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Ripken Iron Works faces the following probability distribution: State of the Economy Probability of State Occurring Stock's forecasted Return if this State Occurs Boom .25
Ripken Iron Works faces the following probability distribution:
State of the Economy | Probability of State Occurring | Stock's forecasted Return if this State Occurs |
---|---|---|
Boom | .25 | 40% |
Normal | .50 | 20% |
Recession | .25 | 0% |
What is the coefficient of variation on the companys stock?
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