Calculate the stocks expected return-standard deviation


Problem:

A stock's return has the following distribution

Demand of the company Product    Probability of this demand occurring    Rate of Return 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

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

Solution Preview :

Prepared by a verified Expert
Finance Basics: Calculate the stocks expected return-standard deviation
Reference No:- TGS02079428

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)