An analyst has estimated how a particular stock's return will vary depending on what will...

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Accounting

An analyst has estimated how a particular stock's return will vary depending on what will happen to the economy:

State of

Probability of

Stock's Expected Return

the Economy

State Occurring

if this State Occurs

Recession

0.10

-60%

Below Average

0.20

-10

Average

0.40

15

Above Average

0.20

40

Boom

0.10

90

What is the coefficient of variation on the company's stock?

a.

2.121

b.

3.727

c.

2.472

d.

3.334

e.

2.201

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