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A stock's returns have the following distribution: % Demand for the Company's Products Weak Below average % Probability of this Demand Occurring 0.1 0.1 0.3 0.3 0.2 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to tw decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio: Average Above average Strong Rate of Return if this Demand Occurs (20%) (14) 10 36 52

A stock's returns have the following distribution: % Demand for the Company's Products Weak Below average % Probability of this Demand Occurring 0.1 0.1 0.3 0.3 0.2 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to tw decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio: Average Above average Strong Rate of Return if this Demand Occurs (20%) (14) 10 36 52

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 14P
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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 Rate of Return if this Demand Occurs 0.2 1.0 Assume the risk-free rate is 2%. 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: (20%) (14) 10 36 52
Transcribed Image Text: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 Rate of Return if this Demand Occurs 0.2 1.0 Assume the risk-free rate is 2%. 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: (20%) (14) 10 36 52
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