Question
Stock AAA has the following probability distribution: If economy is good (the probability is 30%), its expected stock return is 30%; if economy is on
Stock AAA has the following probability distribution: If economy is good (the probability is 30%), its expected stock return is 30%; if economy is on average (the probability is 40%), its expected stock return is 10%; if economy is bad (the probability is 30%), its expected return is -10%. Find the expected rate of return for stock AAA
4.0% | ||
6.0% | ||
10.0% | ||
14.0% |
Using the data from above, find the standard deviation (risk) for stock AAA
13.49% | ||
14.59% | ||
15.49% | ||
16.56% |
Using the results from Question 34 and 35, calculate the coefficient of variation for stock AAA
1.55 | ||
1.78 | ||
1.99 | ||
0.65 |
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