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Ripken Iron Works believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? State of the
Ripken Iron Works believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
State of the Economy | Probability of State Occurring | Stocks Expected Return |
Boom | 25% | 25% |
Normal | 50% | 15% |
Recession | 25% | 5% |
0.4360 | ||
0.4714 | ||
0.5068 | ||
0.5448 | ||
0.5856 |
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