P-1 EXPECTED RETURN A stocks returns have the following distribution:

DEMAND for the Probability of This Rate of Return If This

Companys Products Demand Occurring 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 coefficient of variation.

PLEASE FILL IN THE FOLLOWING CHART:

Demand	Probability(A)	Rate of return(B)	Expected Return(C=A*B)	dx=(D=B/Exp.Ret.)	dx2 (E)	Variance (E*A)
Weak
Below Average
Average
Above Average
Strong
Total			Expected Return =			Variance =

Standard Deviation =

Stock Coefficient of variation= Standard deviation/ expected return