Question

**EXPECTED RETURN**

A stock's returns have the following distribution:

Demand for theCompany's Products |
Probability of ThisDemand Occurring |
Rate of Return IfThis Demand Occurs |

Weak | 0.2 | (44%) |

Below average | 0.1 | (6) |

Average | 0.5 | 17 |

Above average | 0.1 | 21 |

Strong | 0.1 | 64 |

1.0 |

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

%

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

%

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

Answer #1

Expected return=Respective return*Respective probability

=(0.2*-44)+(0.1*-6)+(0.5*17)+(0.1*21)+(0.1*64)=**7.6%**

probability | Return | probability*(Return-Mean)^2 |

0.2 | -44 | 0.2*(-44-7.6)^2=532.512 |

0.1 | -6 | 0.1*(-6-7.6)^2=18.496 |

0.5 | 17 | 0.5*(17-7.6)^2=44.18 |

0.1 | 21 | 0.1*(21-7.6)^2=17.956 |

0.1 | 64 | 0.1*(64-7.6)^2=318.096 |

Total=931.24% |

Standard deviation=[Total probability*(Return-Mean)^2/Total
probability]^(1/2)

=**30.52%(Approx)**

**Coefficient of variation=**Standard
deviation/expected value

=(30.52/7.6)=**4.02(Approx).**

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 (44%) Below
average 0.2 (5) Average 0.3 15 Above average 0.1 30 Strong 0.2 75
1.0 Calculate the stock's expected return. Round your answer to two
decimal places. % Calculate the stock's standard deviation. Do not
round intermediate calculations. Round your answer to two decimal
places. % Calculate the stock's coefficient of...

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
(40%)
Below average
0.2
(9)
Average
0.4
15
Above average
0.1
28
Strong
0.2
71
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
%
Calculate the stock's coefficient of...

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...

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
(38%)
Below average
0.1
(6)
Average
0.3
13
Above average
0.1
26
Strong
0.3
61
1.0
Calculate the stock's
expected return. Round your answer to two decimal places.
%
Calculate the stock's
standard deviation. Do not round intermediate calculations. Round
your answer to two decimal places.
%
Calculate the stock's
coefficient of...

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
(24%)
Below average
0.3
(10)
Average
0.3
14
Above average
0.1
32
Strong
0.2
66
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
%
Calculate the stock's coefficient of...

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
(44%)
Below average
0.1
(6)
Average
0.3
13
Above average
0.1
37
Strong
0.3
64
1.0
Assume the risk-free rate is 2%. 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...

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
0.2
(8)
Average
0.3
11
Above average
0.3
40
Strong
0.1
74
1.0
Calculate the stock's
expected return. Round your answer to two decimal places.
%
Calculate the stock's
standard deviation. Do not round intermediate calculations. Round
your answer to two decimal places.
%
Calculate the stock's
coefficient of variation. Round...

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
(15)
Average
0.4
13
Above average
0.1
33
Strong
0.2
49
1.0
Calculate the stock's
expected return. Round your answer to two decimal places.
%
Calculate the stock's
standard deviation. Do not round intermediate calculations. Round
your answer to two decimal places.
%
Calculate the stock's
coefficient of variation. Round...

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
11
Above average
0.2
38
Strong
0.1
70
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
%
Calculate the stock's coefficient of variation. Round...

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