Question: Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong Probability of
Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong Probability of this Demand Occurring 0.1 0.2 Rate of Return if This Demand Occurs (%) -40% -6 6 0.4 0.2 0.1 35 75 1.0 Calculate the stock's expected return. Round your answer to two decimal places. 11.7 % Calculate the standard deviation. Do not round Intermediate calculations. Round your answer to two decimal places
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
