Question: A stock's return has the following distribution
|
|
Demand of the company Product
|
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
|
|
Calculate the stock's expected return, standard deviation, and coefficient of variation.