Question: Problem 8-1 Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If
Problem 8-1 Expected return
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 | -38% | ||
| Below average | 0.1 | -13 | ||
| Average | 0.3 | 10 | ||
| Above average | 0.4 | 23 | ||
| Strong | 0.1 | 70 | ||
| 1.0 |
Calculate the stock's expected return. Round your answer to two decimal places.
Calculate the stock's standard deviation. Round your answer to two decimal places. %
Calculate the stock's coefficient of variation. Round your answer to two decimal places.
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