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 | -44% | ||
Below average | 0.1 | -13 | ||
Average | 0.4 | 16 | ||
Above average | 0.1 | 33 | ||
Strong | 0.3 | 63 | ||
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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