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You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the
You were analyzing a stock and came up with the following probability distribution of the stock returns.
What is the coefficient of variation on the company's stock?
State of Economy Probability of State Occurring Stock's Expected Return
Boom 40.00% 21.15%
Normal 51.00% 12.70%
Recession 9.00% 6.85%