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 -20%
Below average 0.2 -5
Average 0.4 10
Above average 0.2 34
Strong 0.1 56
1.0
  1. Calculate the stock's expected return. Round your answer to two decimal places.%
  2. Calculate the stock's standard deviation. Round your answer to two decimal places.%
  3. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

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