Explore BrainMass
Share

Expected return, standard deviation, coefficent of variation

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

Please see attached.

1-1 A stock's return has the following distribution

Demand of the company Product Probability of this demand occurring Rate of Return 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

Calculate the stock's expected return, standard deviation, and coefficient of variation

© BrainMass Inc. brainmass.com October 16, 2018, 9:40 pm ad1c9bdddf
https://brainmass.com/business/finance/expected-return-standard-deviation-coefficent-of-variation-193567

Attachments

Solution Preview

Please see the attached file

1-1 A stock's return has the following distribution

Demand of the company Product Probability of this demand occurring Rate of Return if this demand occurs
Weak 0.1 (50%)
Below ...

Solution Summary

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

$2.19
Similar Posting

Expected return, standard deviation and coefficient of variation

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEMS Your expectations from a one year investment in HiTech Computers is as follows:
Probability Rate of Return
.15 -.10
.15 -.20
.35 .00
.25 .15
.10 .15

1. What is the expected return from this investment?
2. What is the standard deviation of your expected return from this investment?
3. What is the coefficient of variation of this investment?

Please show calculations.

View Full Posting Details