An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock? OF THE ECONOMY PROBABILITY OF STATE OCCURRING STOCK'S EXPECTED RATE IF THIS STATE OCCURS Recession Below Average Average Above Average Boom .10 .20 .40 .20 .10 (.60) (.10) .15 .40 .90
An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock? OF THE ECONOMY PROBABILITY OF STATE OCCURRING STOCK'S EXPECTED RATE IF THIS STATE OCCURS Recession Below Average Average Above Average Boom .10 .20 .40 .20 .10 (.60) (.10) .15 .40 .90
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
Problem 1PS
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An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock?
| OF THE ECONOMY |
PROBABILITY OF STATE OCCURRING |
STOCK'S EXPECTED |
|
Recession Below Average Average Above Average Boom |
.10 .20 .40 .20 .10 |
(.60) (.10) .15 .40 .90 |
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