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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
- 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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