Question

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 | (32%) |

Below average | 0.2 | (13) |

Average | 0.3 | 14 |

Above average | 0.3 | 39 |

Strong | 0.1 | 53 |

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

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
18
Above average
0.3
30
Strong
0.1
53
1.0
Assume the risk-free rate is 4%. 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
(38%)
Below average
0.2
(15)
Average
0.3
12
Above average
0.3
36
Strong
0.1
61
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
0.2
(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
(30%)
Below average
0.2
(13)
Average
0.3
16
Above average
0.3
37
Strong
0.1
61
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
(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...

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 (42%) Below average 0.2 (15)
Average 0.3 17 Above average 0.3 36 Strong 0.1 63 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: %...

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 (48%) Below average 0.2 (11)
Average 0.3 11 Above average 0.1 24 Strong 0.3 54 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: %...

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
0.1
(13)
Average
0.3
12
Above average
0.3
29
Strong
0.2
48
1.0
Assume the risk-free rate is 3%. 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
(30%)
Below average
0.2
(14)
Average
0.3
17
Above average
0.3
26
Strong
0.1
51
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
(46%)
Below average
0.4
(8)
Average
0.3
16
Above average
0.1
20
Strong
0.1
53
1.0
Assume the risk-free
rate is 3%. 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:
%...

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