A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong % Probability of this Demand Occurring 0.1 0.1 0.3 0.3 0.2 1.0 Assume the risk-free rate is 4%. 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. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio: % Rate of Return if this Demand Occurs (42%) (13) 12 27 59
A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong % Probability of this Demand Occurring 0.1 0.1 0.3 0.3 0.2 1.0 Assume the risk-free rate is 4%. 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. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio: % Rate of Return if this Demand Occurs (42%) (13) 12 27 59
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 14P
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