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Expected return 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
Expected return
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 | -26% |
| Below average | 0.3 | -8 |
| Average | 0.3 | 18 |
| Above average | 0.1 | 25 |
| Strong | 0.2 | 66 |
| 1.0 |
- A. Calculatethestock'sexpectedreturn.Roundyouranswertotwodecimalplaces.
- B. Calculatethestock'sstandarddeviation.Donotroundintermediatecalculations.Roundyouranswertotwodecimalplaces.
- C. Calculate the stock's coefficient of variation. Round your answer to two decimal places.
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Statistical Reasoning For Everyday Life
Authors: Jeff Bennett, William Briggs, Mario Triola
5th Edition
9780134494043
