Calculate the stocks expected return


Problem: 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                   0.1  (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.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Calculate the stocks expected return
Reference No:- TGS02073527

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)