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 | (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 your answer to two decimal places.

Answer #1

Expected return=Respective returns*Respective probabilties

=(0.1*-44)+(0.2*-8)+(0.3*11)+(0.3*40)+(0.1*74)=**16.7%**

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

0.1 | -44 | 0.1*(-44-16.7)^2=368.449 |

0.2 | -8 | 0.2*(-8-16.7)^2=122.018 |

0.3 | 11 | 0.3*(11-16.7)^2=9.747 |

0.3 | 40 | 0,3(40-16.7)^2=162.867 |

0.1 | 74 | 0.1*(74-16.7)^2=328.329 |

Total=991.41% |

SD=[Total Probability*(Return-Mean)^2/Total Probability]^(1/2)

=**31.49%(Approx).**

**CV=SD/mean**

**=(**31.49/16.7)

=**1.89(Approx).**

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Return If This Demand Occurs Weak 0.2 (38%)
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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...

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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
0.2
(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
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Standard deviation: %
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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....

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
(36%)
Below average
0.2
(9)
Average
0.3
17
Above average
0.3
39
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....

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
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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