Question: 1. Problem 8.01 (Expected Return) eBook Problem Walk-Through A stock's returns have the following distribution: Rate of Return If Probability of this Demand Occurring This

1. Problem 8.01 (Expected Return) eBook Problem Walk-Through A stock's returns

1. Problem 8.01 (Expected Return) eBook Problem Walk-Through A stock's returns have the following distribution: Rate of Return If Probability of this Demand Occurring This Demand Occurs 0.1 Demand for the Company's Products Weak Below average Average Above average Strong 0.2 0.3 (42%) (13) 11 0.3 30 0.1 48 1.0 Assume the risk-free rate is 3%. 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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