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    Standard deviation and coefficient of variation

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    A stock's return has the following distribution:

    Demand for the Probability of This Rate of Return
    Company's Products Demand Occuring 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%

    If the stock's expected return = 11.4%, calculate standard deviation and coefficient of variation.

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    https://brainmass.com/business/finance/standard-deviation-and-coefficient-of-variation-89468

    Solution Preview

    In order to calculate the standard deviation, we need to first calculate the variance.

    variance = Summation ( expected ...

    Solution Summary

    The solution explains how to calculate the standard deviation of returns and the coefficient of variation.

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