Question
Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 20 % Normal 0.50
Quantitative Problem: You are given the following probability distribution for CHC Enterprises:
| State of Economy | Probability | Rate of return | |
|
| |||
| Strong | 0.15 | 20 | % |
| Normal | 0.50 | 9 | % |
| Weak | 0.35 | -5 | % |
What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places.
%
What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places.
%
What is the stock's coefficient of variation? Do not round intermediate calculations. Round your answer to two decimal places.
%
Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 20 % Normal 0.50 9 % Weak 0.35 -5 % What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. % What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. % What is the stock's coefficient of variation? Do not round intermediate calculations. Round your answer to two decimal places. %
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Building Financial Models
Authors: John Tjia
2nd Edition
0071608893, 978-0071608893
