&eISBN=9780... Ch 08: Homework Problems - Risk and Rates of Return investment returns are above the risk-free rate - so investments with returns equal to the risk-free rate will have a zero Sharpe ratio. It given time period investments with higher v Sharpe ratios performed better, because they generated higher higher v excess returns per un Sharpe ratio is calculated as: Sharpe ratio - (Return - Risk-free rate)/ Quantitative Problem: You are given the following probability distribution for CHC Enterprises State of Economy Probability Rate ofretum Strong 0.20 18% Normal 0.45 9% Weak 0.35 -69 What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places What is the stock's standard deviation? Do not round Intermediate calculations. Round your answer to two decimal places What is the stock's coefficient of variation Do not round Intermediate calculations. Round your answer to two decimal places Grade It Now Save & Continue R