Question
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 -20% Below average 0.1 -10 Average 0.4 18 Above average 0.2 33 Strong 0.2 52 1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the stock's coefficient of variation. Round your answer to two decimal places.
Problem 8-1 Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of this Rate of Return If Demand Occurring This Demand Occurs Weak 0.1 -20% 18 0.2 33 Below average 0.1 -10 Average 0.4 Above average Strong 0.2 52 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places. % b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % C. Calculate the stock's coefficient of variation. Round your answer to two decimal placesStep by Step Solution
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