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	(26%)
Below average	0.2	(14)
Average	0.3	13
Above average	0.3	29
Strong	0.1	46
	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 variation: _______

Sharpe ratio: __________

Answer 1

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