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1.  Problem 8.01 Click here to read the eBook: Stand-Alone Risk EXPECTED RETURN A stock's returns have...

1.  Problem 8.01

Click here to read the eBook: Stand-Alone Risk

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 0.2 (40%)
Below average 0.1 (11)   
Average 0.4 14  
Above average 0.2 39  
Strong 0.1 74  
1.0

  1. Calculate the stock's expected return. Round your answer to two decimal places.
    %

  2. Calculate the stock's standard deviation. Do not round intermediate calculations. 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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