A stock's return has the following distribution: Probability of This Demand Occurring Demand for the Rate...
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A stock's return has the following distribution: Probability of This Demand Occurring Demand for the Rate of Return If This Demand Occurs (%) Company's Products Weak 0.1 -50% Below average 0.2 -5 Average Above average Strong 0.4 16 0.2 25 0.1 1.0 60 Calculate the stock's expected return and standard deviation. A stock's return has the following distribution: Probability of This Demand Occurring Demand for the Rate of Return If This Demand Occurs (%) Company's Products Weak 0.1 -50% Below average 0.2 -5 Average Above average Strong 0.4 16 0.2 25 0.1 1.0 60 Calculate the stock's expected return and standard deviation.
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probability return product 01 05 005 02 005 001 04 016 0064 02 025 005 ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
Posted Date:
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