A stock's returns have the following distribution: Demand for the Probability of This Rate of Return If Company's Products Demand Occurring This Demand Occurs Weak 0.1 (26%) Below average 0.1 (11) Average 0.4 18 Above average 0.3 27 Strong 0.1 52 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. onloulntionc R ound vour ans wers to two decimal places
A stock's returns have the following distribution: Demand for the Probability of This Rate of Return If Company's Products Demand Occurring This Demand Occurs Weak 0.1 (26%) Below average 0.1 (11) Average 0.4 18 Above average 0.3 27 Strong 0.1 52 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. onloulntionc R ound vour ans wers to two decimal places
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 1P
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