A stock's returns have the following distribution: Probability Rate of Return 0.1 -25% 0.2 0.4 0.2 0.1 -10% 10% 20% 30% Calculate the stock's a) expected return, b) standard deviation, and c) coefficient of variation. a) 6.50%; b) 2.50%; c)0.39 a) 5.00%; b) 15.89%; c)3.18 a) 5.00%; b) 15.82%; c)2.43 a) 6.50%; b) 15.82%; c)2.43

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 5P
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A stock's returns have the following distribution:
Probability Rate of Return
0.1
-25%
-10%
10%
0.2
0.4
0.2
0.1
20%
30%
Calculate the stock's a) expected return, b) standard deviation, and c) coefficient of
variation.
a) 6.50%; b) 2.50%; c)0.39
a) 5.00%; b) 15.89%; c)3.18
a)5.00%; b) 15.82%; c)2.43
a) 6.50%; b) 15.82%; c)2.43
Transcribed Image Text:A stock's returns have the following distribution: Probability Rate of Return 0.1 -25% -10% 10% 0.2 0.4 0.2 0.1 20% 30% Calculate the stock's a) expected return, b) standard deviation, and c) coefficient of variation. a) 6.50%; b) 2.50%; c)0.39 a) 5.00%; b) 15.89%; c)3.18 a)5.00%; b) 15.82%; c)2.43 a) 6.50%; b) 15.82%; c)2.43
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