QUESTION 9

Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Do not round your intermediate calculations. 25% chance of boom economy and stock's return of 25%, 50% chance of normal economy and return of 15%, and 25% chance of reccesion with a 5% return. What is the expected return?

a. 11.8%

b. 12.8%

c. 15%

d. 14.8%

e. 10.8%