Question: stock's returns have the following distribution: Problem Walk-Throuch Demand for the Company's Products Weak Below average Probability of This Demand Occurring Rate of Return If
stock's returns have the following distribution:
Problem Walk-Throuch
Demand for the
Company's Products
Weak
Below average
Probability of This
Demand Occurring
Rate of Return If
This Demand Occurs
0.1
0.1
Average
Above average
Strong
0.3
(28%)
(10)
15
0.3
0.2
38
52
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.
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