Question

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

Weak | 0.2 | (50%) |

Below average | 0.2 | (14) |

Average | 0.3 | 10 |

Above average | 0.2 | 24 |

Strong | 0.1 | 52 |

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*-50)+(0.2*-14)+(0.3*10)+(0.2*24)+(0.1*52)

which is equal to

=**0.20%**

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

0.2 | -50 | 0.2*(-50-0.20)^2=504.008 |

0.2 | -14 | 0.2*(-14-0.20)^2=40.328 |

0.3 | 10 | 0.3*(10-0.20)^2=28.812 |

0.2 | 24 | 0.2*(24-0.20)^2=113.288 |

0.1 | 52 | 0.1*(52-0.20)^2=268.324 |

Total=954.76% |

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

which is equal to

=**30.90%(Approx).**

Coefficient of variation=Standard deviation/Expected value

=(30.90/0.20)

which is equal to

=**154.50(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
0.1
(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...

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Average 0.3 13 Above average 0.2 34 Strong 0.1 62 1.0 Calculate the
stock's expected return. Round your answer to two decimal places. %
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Round your answer to two decimal...

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
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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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the Company's Products Probability of This Demand Occurring Rate of
Return If This Demand Occurs Weak 0.2 (32%) Below average 0.1 (9)
Average 0.3 10 Above average 0.1 27 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 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
0.1
(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 (38%)
Below average 0.1 (15)
Average 0.3 13
Above average 0.1 37
Strong 0.3 51
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 0.2 (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...

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...

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
(14)
Average
0.3
14
Above average
0.2
38
Strong
0.2
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
0.1
(28%)
Below average
0.3
(9)
Average
0.3
12
Above average
0.2
28
Strong
0.1
67
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 coefficient of variation....

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