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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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