Question
Use the following information for questions 8 to 10 You are given the following probability distribution. Economy Growth State Probability Pi Cash Flow Xi Weak
Use the following information for questions 8 to 10
You are given the following probability distribution.
Economy Growth State Probability Pi Cash Flow Xi
Weak 0.2 2,000
Moderate 0.4 6,000
Normal 0.3 10,000
High 0.1 15,000
What is the expected value of the cash flows?
What is the variance of the cash flows?
What is the coefficient of variation of the cash flows?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
