Expected returna stocks returns have the following, Ask an Expert

Finance

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 (34%)

Below average 0.1 (12)

Average 0.4 16

Above average 0.2 40

Strong 0.1 47

1.0

A. Calculate the stock's expected return. Round your answer to two decimal places. %

B. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. %

C. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92870608

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