Question: Expected Return: Discrete Distribution Expected Return: Discrete Distribution A stock's return has the following distribution: table [ [ table [ [ Demand for

Expected Return: Discrete Distribution Expected Return: Discrete Distribution
A stock's return has the following distribution:
\table[[\table[[Demand for the],[Company's Products]],\table[[Probability of This],[Demand Occurring]],\table[[Rate of Return if This],[Demand Occurs (%)]]],[Weak,0.1,-30%],[Below average,0.2,-8],[Average,0.4,13],[Above average,0.2,40],[Strong,0.1_,55],[,1.0_,]]
Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.
Expected return: %
Standard deviation: %
A stock's return has the following distribution:
Demand for the
Company's Products Probability of This
Demand Occurring Rate of Return if This
Demand Occurs (%)
Weak 0.1-30%
Below average 0.2-8
Average 0.413
Above average 0.240
Strong 0.155
1.0
Calculate the stocks expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.
 Expected Return: Discrete Distribution Expected Return: Discrete Distribution A stock's return

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!