Question: Tiny Legend Learning Academy believes the probability distribution, shown below, holds true for its shares. What is the coefficient of variation on the corporation shares?
Tiny Legend Learning Academy believes the probability distribution, shown below, holds true for its shares.
What is the coefficient of variation on the corporation shares?
| State of the economy | Probability of state occurring | Shares’ expected return |
| Strong growth | 0,25 | 20% |
| Moderate growth | 0,50 | 12% |
| Low growth | 0,25 | 8% |
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The coefficient of variation CV is a measure of the risk or volatility of an investment relative to ... View full answer
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