Explore BrainMass

Explore BrainMass

    Standard deviation and coefficient of variation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    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.

    © BrainMass Inc. brainmass.com October 3, 2022, 2:04 am ad1c9bdddf

    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.