An investment Analysist provide the following data regarding the possible future returns on AmDa’s common stock State of economy Probability Return Recession 0.25 -1.4% Normal 0.45 9.4% Boom 0.30 15.4% i. Compute the expected return on the security? ii. Compute the standard deviation on the security? iii. Compute the Coefficient of variatio
An investment Analysist provide the following data regarding the possible future returns on AmDa’s common stock State of economy Probability Return Recession 0.25 -1.4% Normal 0.45 9.4% Boom 0.30 15.4% i. Compute the expected return on the security? ii. Compute the standard deviation on the security? iii. Compute the Coefficient of variatio
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 9PROB
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An investment Analysist provide the following data regarding the possible future returns on AmDa’s common stock
State of economy Probability Return
Recession 0.25 -1.4%
Normal 0.45 9.4%
Boom 0.30 15.4%
i. Compute the expected return on the security?
ii. Compute the standard deviation on the security?
iii. Compute the Coefficient of variation
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