PLEASE SHOW STEP BY STEP DETAIL ESPECIALLY HOW TO FIND THE STANDARD DEVIATION AN

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PLEASE SHOW STEP BY STEP DETAIL ESPECIALLY HOW TO FIND THE STANDARD DEVIATION AND COEFFICIENT OF VARIATION ON THE CALCULATOR!

A stock's returns have the following distribution:

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

Calculate the stock's standard deviation. Do not round intermediate calculations. 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 (36%) Below average 0.3 (8)    Average 0.4 16   Above average 0.1 20   Strong 0.1 54   1.0

Explanation / Answer

Stocks Expected return = 0.1* (-36%) + 0.3 * -8% + 0.4 * 16% + 0.1 * 20% + 0.1*54% = 7.80%

Stocks Standard deviation = [0.1* (-36%-7.8%)2 + 0.3 * (-8%-7.8%)2 + 0.4 * (16%-7.8%)2 + 0.1 * (20%-7.8%)2 + 0.1*(54%-7.8%)2 ]0.5 = 22.85%

Coefficient of variation = Standard deviation/Expected return = 2.93

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