Expected Return = [0.2(-0.40) + 0.1(-0.06) + 0.3(0.13) + 0.2(0.22) + 0.2(0.57)]
Expected Return = 0.111
Standard Deviation = [(0.2(-0.40 - 0.111)2 + 0.1(-0.06 - 0.111)2 + 0.3(0.13 - 0.111)2 + 0.2(0.22 - 0.111)2 + 0.2(0.57 - 0.111)2]1/2
Standard Deviation = 0.3159
CV = 0.3159/0.111
CV = 2.85
Problem 8-1 Expected return A stock's returns have the following distribution: Demand for the Company's Products...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (20%) Below average 0.1 (13) Average 0.4 16 Above average 0.3 38 Strong 0.1 53 1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the stock's coefficient of...
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.1 (26%) 0.3 (15) Weak 0.3 13 Below average Average Above average Strong 0.1 37 51 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places. % lo b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % c. Calculate the...
Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 -48% Below average 0.1 -12 Average 0.6 18 Above average 0.1 32 Strong 0.1 45 1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the stock's coefficient of...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.2 -38% Below average 0.1 -15 Average 0.3 17 Above average 0.3 32 Strong 0.1 62 1.0 Calculate the stock's expected return. Round your answer to two decimal places. % Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the stock's coefficient of variation. Round...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (46%) Below average 0.3 (10) Average 0.3 11 Above average 0.1 29 Strong 0.2 66 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (28%) Below average 0.2 (15) Average 0.3 11 Above average 0.3 40 Strong 0.1 57 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: ? % Standard deviation:...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (44%) Below average 0.1 (15) Average 0.3 10 Above average 0.3 23 Strong 0.2 45 1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (46%) Below average 0.1 (14) Average 0.3 10 Above average 0.3 29 Strong 0.2 49 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: %...
stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (26%) Below average 0.2 (11) Average 0.3 17 Above average 0.3 21 Strong 0.1 64 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient...
A stock's returns have the following distribution: Probability of this Rate of Return If Demand Occurring This Demand Occurs 0.2 Demand for the Company's Products Weak Below average Average Above average Strong 0.2 (8) 0.3 0.1 0.2 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round Intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of variation: Sharpe ratio: