Explore BrainMass

Explore BrainMass

    Calculating Expected Return from a Stock's Distribution

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A stock's return has the following distributions:

    Demand for the Probability of Rate of Return
    Company's This Demand If This
    Products Occuring 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 February 24, 2021, 2:33 pm ad1c9bdddf


    Solution Preview

    Please refer to the EXCEL for calculation
    expected return = ...

    Solution Summary

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