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PLEASE ANSWER (C) EXPECTED RETURN A stock\'s returns have the following distribu

ID: 2785710 • Letter: P

Question

PLEASE ANSWER (C)

EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Demand Occurring This Demand Occurs Weak Below average Average Above average Strong Probability of This Rate of Return If (20%) (10) 10 0.2 0.4 0.1 73 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places 8.9 b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places 26.89 C. Calculate the stock's coefficient of variation. Round your answer to two decimal places 723.29

Explanation / Answer

Coefficient of variation=Standard deviation/mean

which is equal to

=(26.89/8.9)

=3.02(Approx).