Question

Exercise Calculate the expected return, variance, standard deviation and coefficient of variation for the following stock:...

Exercise

Calculate the expected return, variance, standard deviation and coefficient of variation for the following stock:

Demand for Company’s Products

Probability of this outcome

Return if this occurs

Weak

.1

-50%

Below Average

.2

-5%

Average

.4

16%

Above Average

.2

25%

Strong

.1

60%

1.0
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The expected return, variance, standard deviation and coefficient of variation for the stock is as follows:

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