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Problem 8-1 Expected return Complete the table below, to calculate the expected rate of return, o2, standard deviation, and coefficient of variation Optional: can break
Problem 8-1 Expected return Complete the table below, to calculate the expected rate of return, o2, standard deviation, and coefficient of variation Optional: can break column E calculation into the following three steps A stock's returns have the following distribution: Rate of Return if Demand for the Probability of Company's Products Demand Occurring This Demand Weighted return curs (ri- rexpected) Pi (ri-rexpected)ri-repected) (ri-respected) Pi Weak 0.1 -50% Below Average 0.2 -5% Average 0.4 16% Above Average 0.2 25% Strong 0.1 60% Total 1.000 a2 Expected rate of return Standard deviation of return, o Coefficient of Variation (o/respected) 1.00
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