Question
eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this
eBook Problem Walk-Through A stock's returns have the following distribution:
Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs
Weak 0.1 (48%) Below average 0.1 (15) Average 0.4 14 Above average 0.3 23 Strong 0.1 58 1.0 Assume the risk-free rate is 3%.
Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.
Stock's expected return: %
Standard deviation: %
Coefficient of variation:
Sharpe ratio:
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