Expected return A stock\'s returns have the following distribution: Calculate th

Question

Expected return

A stock's returns have the following distribution:

Calculate the stock's expected return. Round your answer to two decimal places.
{C}%

Calculate the stock's standard deviation. Round your answer to two decimal places.
%

Calculate the stock's coefficient of variation. Round your answer to two decimal places.

Demand for the
Company's Products Probability of This
Demand Occurring Rate of Return If
This Demand Occurs Weak 0.1 -50% Below average 0.3 -13    Average 0.3 16   Above average 0.1 35   Strong 0.2 71   1.0

Explanation / Answer

Demand for the Probability of This Rate of Return If Company's Products Demand Occurring This Demand Occurs Return Weak 0.1 -50% -0.05 Below average 0.3 -13% -0.039 Average 0.3 16% 0.048 Above average 0.1 35% 0.035 Strong 0.2 71% 0.142 Stock return 13.60% Standard deviation 7.75% Coefficient of variation is standard deviation / Expected return 0.57

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