Question: eBook 1 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
eBook 1 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 (34%) Below average (15) Average Above average 0.3 Strong 55 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Intermediate calculations. Round your answers to two decimal places. 0.1 0.3 18 29 0.2 Stock's expected return: 20.2 % Standard deviation: 20.00 % Coefficient of variation: 0.99 Sharpe ratio: 0.81
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