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Problem 8-1 Expected return A stock's returns have the following distribution: Probability of This Demand for the Rate of Return If Company's Products Demand Occurring
Problem 8-1 Expected return A stock's returns have the following distribution: Probability of This Demand for the Rate of Return If Company's Products Demand Occurring This Demand Occurs Weak 0.1 -34% Below average 0.2 -15 Average 0.4 18 Above average 0.1 24 Strong 0.2 52 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places 13.6 % b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. 23.24 c. Calculate the stock's coefficient of variation. Round your answer to two decimal places. 1.71
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