A stock's return has the following distribution:
Demand for the Probability of This Rate of Rate of Return if This Company's Products Demand Occurring Demand Occurs
Weak 0.1 (50%)
Below average 0.2 (5)
Average 0.4 16
Above average 0.2 25
Strong 0.1 60
Calculate the stock's expected return, standard deviation, and coefficient of variation.© BrainMass Inc. brainmass.com June 3, 2020, 11:52 pm ad1c9bdddf
Please refer attached file for complete solution. Formulas typed with the help of equation writer are missing here.
Demand Probability of demand Return Mean
P X P*X X-Mean ...
This solution describes the steps to calculate expected value, standard deviation and coefficient of variation for the given distribution of return.