Purchase Solution

Expected return, standard deviation and coeff of variation

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

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

Solution Preview

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

Purchase this Solution


Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.