Question
Please work out Problem Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
Please work out Problem
Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Do not round your intermediate calculations.
| State of the Economy | Probability of State Occurring | Stock's Expected Return | ||
| Boom | 0.29 | 25% | ||
| Normal | 0.54 | 15% | ||
| Recession | 0.17 | 5% |
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The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
