# Expected return, standard deviation and coeff of variation

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

© BrainMass Inc. brainmass.com June 3, 2020, 8:45 pm ad1c9bdddfhttps://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