Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%) Weak 0.1 -25% Below average 0.2 -8 Average 0.4 7 Above average 0.2 35 Strong 0.1 60 1.0 Calculate the stock's expected return. Round your answer to two decimal places.___% Calculate the standard deviation. Round your answer to two decimal places.___%
Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%) Weak 0.1 -25% Below average 0.2 -8 Average 0.4 7 Above average 0.2 35 Strong 0.1 60 1.0 Calculate the stock's expected return. Round your answer to two decimal places.___% Calculate the standard deviation. Round your answer to two decimal places.___%
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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Expected Return: Discrete Distribution
A stock's return has the following distribution:
| Demand for the Company's Products |
Probability of This Demand Occurring |
Demand Occurs (%) |
|
| Weak | 0.1 | -25% | |
| Below average | 0.2 | -8 | |
| Average | 0.4 | 7 | |
| Above average | 0.2 | 35 | |
| Strong | 0.1 | 60 | |
| 1.0 |
Calculate the stock's expected return. Round your answer to two decimal places.
___%
Calculate the standard deviation. Round your answer to two decimal places.
___%
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