Question
Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.25 20 % Normal 0.50
Quantitative Problem: You are given the following probability distribution for CHC Enterprises:
| State of Economy | Probability | Rate of return | |
| Strong | 0.25 | 20 | % |
| Normal | 0.50 | 10 | % |
| Weak | 0.25 | -4 | % |
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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Financial Economics
Authors: Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
1st Edition
0470596201, 9780470596203
