Question
Expected return. A stocks returns have the following distribution; Denand for the companys product Probability of this demand occurring Rate of return if this demand
- Expected return. A stocks returns have the following distribution;
| Denand for the companys product | Probability of this demand occurring | Rate of return if this demand occurs |
| Weak | 0.1 | (50%) |
| Below average | 0.2 | (5%) |
| Average | 0.4 | 16 |
| Above average | 0.2 | 25 |
| Strong | 0.1 | 60 |
|
| 1.0 |
|
Calculate the stocks expected return, standard deviation . and the coefficient of variation.
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
