EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of...

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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 0.1 (38%)
Below average 0.2 (12)
Average 0.3 12
Above average 0.1 25
Strong 0.3 72
1.0
Calculate the stock's expected return. Round your answer to twodecimal places.
%
Calculate the stock's standard deviation. Do not roundintermediate calculations. Round your answer to two decimalplaces.
%
Calculate the stock's coefficient of variation. Round youranswer to two decimal places.
EXPECTED RETURNS
Stocks A and B have the following probability distributions ofexpected future returns:
Probability A B
0.2 (12%) (37%)
0.2 4 0
0.3 14 22
0.2 19 29
0.1 35 49
Calculate the expected rate of return, r_B, for StockB (r_A = 9.90%.) Do not round intermediate calculations.Round your answer to two decimal places.
%
Calculate the standard deviation of expected returns,?_A, for Stock A (?_B = 27.01%.) Do not roundintermediate calculations. Round your answer to two decimalplaces.
%
Now calculate the coefficient of variation for Stock B. Roundyour answer to two decimal places.

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EXPECTED RETURNA stock's returns have the following distribution:Demand for theCompany's ProductsProbability of ThisDemand OccurringRate of Return IfThis Demand OccursWeak0.1(38%)Below average0.2(12) Average0.312 Above average0.125 Strong0.372 1.0Calculate the stock's expected return. Round your answer to twodecimal places.%Calculate the stock's standard deviation. Do not roundintermediate calculations. Round your answer to two decimalplaces.%Calculate the stock's coefficient of variation. Round youranswer to two decimal places.EXPECTED RETURNSStocks A and B have the following probability distributions ofexpected future returns:ProbabilityAB0.2(12%)(37%)0.2400.314220.219290.13549Calculate the expected rate of return, rB, for StockB (rA = 9.90%.) Do not round intermediate calculations.Round your answer to two decimal places.%Calculate the standard deviation of expected returns,?A, for Stock A (?B = 27.01%.) Do not roundintermediate calculations. Round your answer to two decimalplaces.%Now calculate the coefficient of variation for Stock B. Roundyour answer to two decimal places.

Demand for the Company's Products	Probability of This Demand Occurring	Rate of Return If This Demand Occurs
Weak	0.1	(38%)
Below average	0.2	(12)
Average	0.3	12
Above average	0.1	25
Strong	0.3	72
	1.0