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EXPECTED RETURNA stocks returns have the following distribution: Demand for the Companys Products Probability of this Demand Occurring Rate of Return if this Demand Occurs

EXPECTED RETURNA stocks returns have the following distribution:

Demand for the Companys Products

Probability of this Demand Occurring

Rate of Return if this Demand Occurs

Weak

0.1

(30%)

Below average

0.1

(14)

Average

0.3

11

Above average

0.3

20

Strong

0.2

45

1.0

Assume the risk-free rate is 2%. Calculate the stocks expected return, standard deviation, coefficient of variation, and Sharpe ratio.

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