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XYZ stock's returns will have the following probability distribution during the possible states of the economy. a. Calculate the expected return on XYZ stock. b.
XYZ stock's returns will have the following probability distribution during the possible states of the economy. a. Calculate the expected return on XYZ stock. b. Calculate the standard devivation of XYZ stock returns. c. Calculate the coefficient of variation of XYZ stock. | ||||||||
State of Economy | Probability | Return | ||||||
Boom | 30% | 31.50% | ||||||
Normal | 50% | 11.50% | ||||||
Recession | 20% | -12.50% | ||||||
Your Answer: (Round to TWO decimals.) | ||||||||
Expected Return: Blank 1. Fill in the blank, read surrounding text. % | ||||||||
Standard Deviation: Blank 2. Fill in the blank, read surrounding text. % | ||||||||
Coefficient of Variation: Blank 3. Fill in the blank, read surrounding text. |
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