Question: 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.