Senior management of Nancys Nooks (NN) has determined that there is a 20 percent chance EPS will

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Senior management of Nancy’s Nooks (NN) has determined that there is a 20 percent chance EPS will be $4.50 next year, there is a 60 percent chance EPS will be 1.50, and there is a 20 percent chance EPS will be −$1.80. Calculate the expected value, standard deviation, and coefficient of variation for NN’s forecasted EPS.

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CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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