Question

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 (34%)

Below average 0.1 (12)   

Average 0.4 16

Above average 0.2 40

Strong 0.1 47

1.0

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

%

B.Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.

%

C. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

Answer 1