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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

  1. 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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