Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. expected return a stock's returns have the followi

EXPECTED RETURN A stock's returns have the following distribution: Demand for the...

80.2K

Verified Solution

Question

Finance

EXPECTED RETURN

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 0.2 (24%)
Below average 0.2 (12)
Average 0.4 16
Above average 0.1 22
Strong 0.1 70
1.0

  1. Calculate the stock's expected return. Round your answer to two decimal places. %

  2. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. %

  3. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

The scores on a driver's test are normally distributed with a mean of 100. Find...

Algebra
1.2K views

Solve for x x 2x 3 Check for extraneous solutions

Algebra
1.2K views

Click here to watch the video Multiply and simplify the following rational expressions p 36...

Accounting
1.2K views

Problem \#1 - Keep or Drop a Product (or Segment) Werner...

Accounting
1.2K views

Sun City issues $55 million of bonds on January 1, 2021 that pay interest semiannually...

Accounting
1.2K views

The balance in the office supplies account on June 1 was $4,993, supplies purchased during...

Accounting
1.2K views

Exercise 6-4 (Algo) Computing and Using the CM Ratio [LO6-3] Last month when Holiday Creations,...

Accounting
1.2K views

solve all parts. thanks US. Airfilter has hired you...

Accounting
1.2K views

Late in December, the next generation of multiuse (MU II) watches is released. In addition...

Accounting
1.2K views

Collected $32,000 for services to be provided over the coming year. make a general journal...

Finance
1.2K views

Max is considering two projects both of which have an initial cost of $13,000 and...

Accounting
1.2K views

I need help with this please