Question
An investor wants to estimate the expected return on his investment in Home Depot stock. Here...
An investor wants to estimate the expected return on his investment in Home Depot stock. Here are the possible returns that could be earned and their probabilities of occurrence:
Possible Return Probability
12% 20%
6% 20%
-10% 20%
22% 20%
5% 20%
a) What is the expected return for Home Depot?
b) What is the variance and standard deviation?
c) What is the coefficient of variation?
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