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A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Probability of This Demand Occurring 0.1 0.2 Rate of Return If This Demand Occurs (42%) (13) 113 Average Above average Strong 0.3 0.3 0.1 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: 10.2 % Standard deviation: Coefficient of variation: Sharpe ratio: %

A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Probability of This Demand Occurring 0.1 0.2 Rate of Return If This Demand Occurs (42%) (13) 113 Average Above average Strong 0.3 0.3 0.1 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: 10.2 % Standard deviation: Coefficient of variation: Sharpe ratio: %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Probability of This Demand Occurring 0.1 0.2 Rate of Return If This Demand Occurs (42%) (13) 113 Average Above average Strong 0.3 0.3 0.1 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: 10.2 % Standard deviation: Coefficient of variation: Sharpe ratio: %
Transcribed Image Text:A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Probability of This Demand Occurring 0.1 0.2 Rate of Return If This Demand Occurs (42%) (13) 113 Average Above average Strong 0.3 0.3 0.1 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: 10.2 % Standard deviation: Coefficient of variation: Sharpe ratio: %
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