Calculate the stocks expected return


A stock’s return has the following distributions:

Demand for the           Probability of This          Rate of Return
Company’s Products    Demand Occurring    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
                                       1.0

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

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Finance Basics: Calculate the stocks expected return
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