A stock's returns have the following distribution: Demand for the Company's Products...
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Finance
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 | (46%) |
Below average | 0.1 | (13) |
Average | 0.3 | 14 |
Above average | 0.3 | 38 |
Strong | 0.2 | 49 |
1.0 |
Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.
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