Calculate stocks expected return-coefficient of variation


Question: A stock’s return has the following distributions:

Demand for the                 Probability of This               Rate of Return

Company's Products          Demand Occurring        if This Demand Occurs

 

Weak                                           0.1                                    (50%)

Below Average                              0.2                                     (5)

Average                                       0.4                                      16

Above Average                             0.2                                      25

Strong                                          0.1                                      60

                                                    1.0

Calculate the stock’s expected return, standard deviation, and coefficient of variation.

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Finance Basics: Calculate stocks expected return-coefficient of variation
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