A stock's returns have the following distribution: Coefficient of variation: Sharpe ratio: % Demand for the...
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A stock's returns have the following distribution: Coefficient of variation: Sharpe ratio: % Demand for the Company's Products % Weak Below average Average Above average Strong Probability of this Demand Occurring Assume the risk-free rate is 2%. 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: 0.1 0.1 0.3 0.3 0.2 1.0 Rate of Return if this Demand Occurs (26%) (11) 13 26 52 A stock's returns have the following distribution: Coefficient of variation: Sharpe ratio: % Demand for the Company's Products % Weak Below average Average Above average Strong Probability of this Demand Occurring Assume the risk-free rate is 2%. 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: 0.1 0.1 0.3 0.3 0.2 1.0 Rate of Return if this Demand Occurs (26%) (11) 13 26 52
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Answer rating: 100% (QA)
To calculate the stocks expected return we need to multiply each possible return by its corresponding probability and then sum them up Expected Return ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
Posted Date:
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