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 | 0.1 | (15) |
Average | 0.4 | 18 |
Above average | 0.3 | 39 |
Strong | 0.1 | 58 |
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:
Correct Answers ONLY. Can't re-do it
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