Question: 1. Problem 8.01 (Expected Return) eBook A stock's returns have the following distribution: Demand for the Probability of this Demand Occurring 0.1 Rate of Return

1. Problem 8.01 (Expected Return) eBook A stock's returns have the

1. Problem 8.01 (Expected Return) eBook A stock's returns have the following distribution: Demand for the Probability of this Demand Occurring 0.1 Rate of Return If This Demand Occurs Company's Products Weak Below average 0.1 (24%) (7) 16 0.3 Average Above average Strong 0.4 32 0.1 50 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio

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