Question: 5. Problem 8.01 (Expected Return) En eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Probability of this Rate of Return

 5. Problem 8.01 (Expected Return) En eBook Problem Walk-Through A stock's

5. Problem 8.01 (Expected Return) En eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Probability of this Rate of Return If Company's Products Demand Occurring This Demand Occurs Weak 0.1 (26%) Below average 0.1 (14) Average 0.4 18 Above average 0.3 39 Strong 0.1 58 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: 20.7 % Standard deviation: 1% Coefficient of variation: Sharpe ratio

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