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QUESTION

EXPECTED RETURN A stock's returns have the following distribution:

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                                                      (30%)

Below average                                     0.1                                                        (13)   

Average                                                0.3                                                        16  

Above average                                      0.1                                                        33  

Strong                                                   0.3                                                         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 variation. Round your answer to two decimal places.
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