The shares of hypothetical company limited has the following anticipated returns with associated probabilities Return % Probability  -20 0.05 -10 0.10 10 0.20 15 0.25 20 0.20 25 0.15 30 0.05 Calculate the expected rate of return, standard deviation, variance  coefficient of variation

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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The shares of hypothetical company limited has the following anticipated returns with associated probabilities

Return % Probability
 -20 0.05
-10 0.10
10 0.20
15 0.25
20 0.20
25 0.15
30 0.05


Calculate the

  1. expected rate of return,
  2. standard deviation,
  3. variance 
  4. coefficient of variation
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