Next calculate the standard deviation sigma finally


The following are the expected outcomes for a corporation and the probabilities associated with each outcome.

If demand is              Outcome                              Probability

Poor                           0%                                          .10

Average                     10%                                        .40

Good                          15%                                        .30

Excellent                    20%                                        .20

First, Calculate the expected rate of return, r^, r with a hat.  

Next, Calculate the Standard Deviation, sigma.    

Finally, Calculate the Coefficient of Variation. 

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Finance Basics: Next calculate the standard deviation sigma finally
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