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Solve the followings Estimated S= Probability 0.15 0.55 0.30 % Rate of return 20% T The coefficient of variation is a better measure of stand-alone
Solve the followings
Estimated S= Probability 0.15 0.55 0.30 % Rate of return 20% T The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the standard deviation divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not identical. Quantitative Problem: You are given the following probability distribution for CHC Enterprises: 9 -5 t-1 State of Economy Strong Normal Weak What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 3.48 % (Tt -FAvg) T-1 What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations.
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