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Conestoga Ltd. has the following estimated probability distribution of returns. Return Probability 4% 0.20 11.5% 0.50 14% 0.30 Calculate Conestoga's expected return, the variance and
Conestoga Ltd. has the following estimated probability distribution of returns.
Return | Probability |
4% | 0.20 |
11.5% | 0.50 |
14% | 0.30 |
Calculate Conestoga's expected return, the variance and standard deviation of its expected return, and the return's coefficient of variation. Round the answers to four decimal places. Round the variance to six decimal places. (Note:Assume discrete probability distributions for the returns on stocks.)
Expected return: % Variance: Standard deviation: % CV:
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