Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...

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Scenario Modeler’s prospective stock has a 15% chance ofproducing a 65% return, a 25% chance of producing a 22% return, a40% chance of producing a 7% return, and a 20% chance of producinga –24% return. What is the firm’s coefficient of variation ofreturn? Enter your answer rounded to two decimal places. Forexample, if your answer is 12.345 then enter as 12.35 in the answerbox.

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Solution The firms coefficient of    See Answer
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Scenario Modeler’s prospective stock has a 15% chance ofproducing a 65% return, a 25% chance of producing a 22% return, a40% chance of producing a 7% return, and a 20% chance of producinga –24% return. What is the firm’s coefficient of variation ofreturn? Enter your answer rounded to two decimal places. Forexample, if your answer is 12.345 then enter as 12.35 in the answerbox.

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