Question
Question 3 Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Probability Stock's
Question 3
Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
| Probability | Stock's |
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State of | of State | Expected |
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the Economy | Occurring | Return |
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Boom | 0.45 | 25% |
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Normal | 0.50 | 15% |
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Recession | 0.05 | 5% |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
