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

EBK CFIN
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Chapter8: Risk And Rates Of Return
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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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