Question: eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This

eBook Problem Walk-Through

A stock's returns have the following distribution:

Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs
Weak 0.1 (42%)
Below average 0.2 (10)
Average 0.3 13
Above average 0.3 21
Strong 0.1 51
1.0

Assume the risk-free rate is 3%. 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: %

Coefficient of variation:

Sharpe ratio:

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