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Roenfeld Corp believes the following probability distribution exists for its stock. State of the Economy Probability of State Occurring Stock's Expected Return Boom 0.05 25%
Roenfeld Corp believes the following probability distribution exists for its stock.
State of the Economy | Probability of State Occurring | Stock's Expected Return |
Boom | 0.05 | 25% |
Normal | 0.50 | 15% |
Recession | 0.45 | 5% |
What is the coefficient of variation on the company's stock?
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