# Probability Distribution and Coefficient of Variation

Ripken Iron Works faces the following probability distribution:

State of the Probability of State Stock's Expected Return if

Economy Occurring this State Occurs

Boom 0.25 25%

Normal 0.50 15

Recession 0.25 5

What is the coefficient of variation on the company's stock? (Assume that the standard deviation is calculated using the population statistic.)

A. 0.06

B. 0.47

C. 0.54

D. 0.67

https://brainmass.com/business/business-math/probability-distribution-coefficient-variation-154442

#### Solution Summary

This solution shows how to calculate the expected value, variance, standard deviation and finally coefficient of variation in an Excel file.

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