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problem: Expected return A stock's returns have the following distribution:

Demand for the Demand Occurring

Probability of this if this Demand Occurs

Rate of Return Company's Products

Weak

0.1

(50%)

Below Average

0.2

(5)

Average

0.4

16

Above Average

0.2

25

Strong

0.1

60

 

-------

------

 

1

 

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

 

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919564

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