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You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the

You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?

State of the Economy

Probability of State Occurring

Stock's Expected Return

Boom

40.00%

22.80%

Normal

46.00%

13.75%

Recession

14.00%

9.35%

a) 0.2763

b) 0.3683

c) 0.2456

d) 0.3376

e) 0.3070

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