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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 | 0.2 | -34% |
Below average | 0.2 | -6 |
Average | 0.4 | 13 |
Above average | 0.1 | 27 |
Strong | 0.1 | 63 |
1.0 |
- Calculate the stock's expected return. Round your answer to two decimal places.%
- Calculate the stock's standard deviation. Round your answer to two decimal places.%
- Calculate the stock's coefficient of variation. Round your answer to two decimal places.
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