A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring
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Question:
A stock's return has the following distribution:
Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return if This Demand Occurs (%) | |||
Weak | 0.1 | -35 | % | ||
Below average | 0.2 | -6 | |||
Average | 0.4 | 15 | |||
Above average | 0.2 | 30 | |||
Strong | 0.1 | 60 | |||
1.0 |
Calculate the stock's expected return. Round your answer to two decimal places. ? %
Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. ? %
Related Book For
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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