Question

Asked Dec 3, 2019

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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.

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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