Question: PLEASE ANSWER BOTH QUESTIONS 2 B . 9 c D 10 11 Rate of Return If 12 . 13 14 eBook Problem Walk-Through A stock's

PLEASE ANSWER BOTH QUESTIONS
PLEASE ANSWER BOTH QUESTIONS 2 B . 9 c D 10 11
Rate of Return If 12 . 13 14 eBook Problem Walk-Through A

2 B . 9 c D 10 11 Rate of Return If 12 . 13 14 eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Probability of this Company's Products Demand Occurring This Demand Occurs Weak 0.1 (38%) Below average 0.1 (10) Average 0.4 17 Above average 0.3 35 Strong 0.1 46 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: 15 16 17. 18 19 20 c Coefficient of variation: 21 Sharpe ratio: 22 2 24 eBook Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $1.00 and its current price is $111 a. What is its nominal annual rate of return? Do not round Intermediate calculations. Round your answer to two decimal places b. What is its effective annual rate of return? Do not round Intermediate calculations, Round your answer to two decimal places. % ooo

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