Problem 8-1 Expected return A stock\'s returns have the following distribution:

Question

Problem 8-1 Expected return A stock's returns have the following distribution: Rate of Return If Demand for the Probability of This This Demand occurs Demand occurring Company's Products 0.1 Weak -50% 0.1 Below average 0.3 14 Average 0.1 24 Above average 0.4 Strong 75 a. Calculate the stock's expected return. Round your answer to two decimal places b. Calculate the stock's standard deviation. Round your answer to two decimal places. c. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

Explanation / Answer

a. 31.1% b. 40.641% c. 40.641/31.1x100= 130.678%

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