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Lavandera Brillante believes the following probability distribution exists for its stock. State of the Economy Probability of State Occurring Stock's Expected Return Boom 0.20 30%

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Lavandera Brillante believes the following probability distribution exists for its stock. State of the Economy Probability of State Occurring Stock's Expected Return Boom 0.20 30% Normal 0.40 16% Recession 0.40 -10% 1. What is the coefficient of variation on the company's stock? 2. If risk-free rate is 2%, what is the Sharpe ratio of the stock

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