Question
Problem 8-1 Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If
Problem 8-1 Expected return
A stock's returns have the following distribution:
| Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return If This Demand Occurs | ||
| Weak | 0.1 | -44% | ||
| Below average | 0.1 | -13 | ||
| Average | 0.4 | 16 | ||
| Above average | 0.1 | 33 | ||
| Strong | 0.3 | 63 | ||
| 1.0 |
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Calculate the stock's expected return. Round your answer to two decimal places. %
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Calculate the stock's standard deviation. Round your answer to two decimal places. %
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Calculate the stock's coefficient of variation. Round your answer to two decimal places.
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Finance And Economics Discussion Series Bank Risk Rating Of Business Loans
Authors: United States Federal Reserve Board, William B. English, William R. Nelson
1st Edition
1288718810, 9781288718818
