A stock market analyst estimates that there is a 25 percent


A stock market analyst estimates that there is a 25 percent chance the economy will be weak, a 50 percent chance the economy will be average, and a 25 percent chance the economy will be strong. The analyst estimates that Hartley Industries' stock will have a 5 percent return if the economy is weak, a 15 percent return if the economy is average, and a 30 percent return if the economy is strong.

On the basis of this estimate, (1) what is the expected return of the stock, (2) what is the standard deviation of the stock, and (3) what is the coefficient of variation of the stock?

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Financial Management: A stock market analyst estimates that there is a 25 percent
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