Question

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	(38%)
Below average	0.3	(9)
Average	0.4	15
Above average	0.1	21
Strong	0.1	71
	1.0

Assume the risk-free rate is 4%. 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.

Stock's expected return: _____ %

Standard deviation: _____ %

Coefficient of variation: _____

Sharpe ratio: _____

Answer 1