Question
Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 18 % Normal 0.45
Quantitative Problem: You are given the following probability distribution for CHC Enterprises:
| State of Economy | Probability | Rate of return | |
| Strong | 0.15 | 18 | % |
| Normal | 0.45 | 8 | % |
| Weak | 0.40 | -5 | % |
What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places.
4.3%
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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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
