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 | 0.1 | (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 variation. Round your answer to two decimal places.

Answer #1

Expected return=Respective return*Respective probability

=(0.1*-40)+(0.2*-9)+(0.4*15)+(0.1*28)+(0.2*71)=**17.2%**

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

0.1 | -40 | 0.1*(-40-17.2)^2=327.184 |

0.2 | -9 | 0.2*(-9-17.2)^2=137.288 |

0.4 | 15 | 0.4*(15-17.2)^2=1.936 |

0.1 | 28 | 0.1*(28-17.2)^2=11.664 |

0.2 | 71 | 0.2*(71-17.2)^2=578.888 |

Total=1056.96% |

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

=**32.51%(Approx)**

Coefficient of variation=Standard deviation/MEan

(32.51/17.2)

=**1.89(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
(24%)
Below average
0.2
(12)
Average
0.4
16
Above average
0.1
22
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...

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
0.1
-50%
Below average
0.2
-9
Average
0.5
13
Above average
0.1
37
Strong
0.1
73
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the stock's standard deviation. Round your answer to
two decimal places.
%
Calculate the stock's coefficient of variation. Round your
answer to...

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...

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
(48%)
Below average
0.2
(8)
Average
0.3
17
Above average
0.2
28
Strong
0.1
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 variation. Round...

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
-46%
Below average
0.3
-10
Average
0.4
17
Above average
0.1
39
Strong
0.1
59
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
-26%
Below average
0.1
-13
Average
0.4
12
Above average
0.1
35
Strong
0.3
45
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 (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
0.2
(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...

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