# You are given the following probability distribution for a stock:Probability                   Outcome .5                                -6%.5                                 18%A) Compute the expected return.B) Compute the standard deviation.C) Compute the coefficient of variation.

Question
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You are given the following probability distribution for a stock:

Probability                   Outcome

.5                                -6%
.5                                 18%

A) Compute the expected return.
B) Compute the standard deviation.
C) Compute the coefficient of variation.

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Step 1

Calculation of expected return, standard deviation and coefficient of variation using excel is as follows:

Step 2

Excel formula used in the abov...

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