# Discrete Distribution: Calculating Expected Return, Standard Deviation and CV

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

1.0

Calculate the stock's expected return, standard deviation, and coefficient of variation.

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#### Solution Preview

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 ...

#### Solution Summary

This solution describes the steps to calculate expected value, standard deviation and coefficient of variation for the given distribution of return.

$2.19