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    Expected return, standard deviation and coeff of variation

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    A sot's return has the following distribution:

    Demand for the Probability of this Rate of Return
    Company's Products Demand Occurring if This 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.

    ANSWER:
    ř = 11.40%
    σ = 26.69 %
    cv=2.34

    I would like to see the work and steps with the formula, Thanks

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    https://brainmass.com/business/finance/expected-return-standard-deviation-coeff-variation-151091

    Solution Preview

    Expected return = Sum (Probability X return)
    Expected return = 0.1X-50% + 0.2X-5%+0.4X16%+0.2X25%+0.1X60%
    Expected return = ...

    Solution Summary

    The solution explains how to calculate the expected return, standard deviation and coefficient of variation.

    $2.19

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