An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock? OF THE ECONOMY PROBABILITY OF STATE OCCURRING STOCK'S EXPECTED RATE IF THIS STATE OCCURS Recession Below Average Average Above Average Boom .10 .20 .40 .20 .10 (.60) (.10) .15 .40 .90
An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock? OF THE ECONOMY PROBABILITY OF STATE OCCURRING STOCK'S EXPECTED RATE IF THIS STATE OCCURS Recession Below Average Average Above Average Boom .10 .20 .40 .20 .10 (.60) (.10) .15 .40 .90
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock?
OF THE ECONOMY |
PROBABILITY OF STATE OCCURRING |
STOCK'S EXPECTED |
Recession Below Average Average Above Average Boom |
.10 .20 .40 .20 .10 |
(.60) (.10) .15 .40 .90 |
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