Sandy Corp believes the following probability distribution exists for its stock. What is the coefficent of variation on the company's stock ?  Probability                  Stock's                state of                       Of state             Expected               the economy              Occuring           Return Boom                          0.45                    25% Normal                        0.50                    15% Recession                   0.05.                   5%

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Sandy Corp believes the following probability distribution exists for its stock. What is the coefficent of variation on the company's stock ? 

Probability                  Stock's               

state of                       Of state             Expected              

the economy              Occuring           Return

Boom                          0.45                    25%

Normal                        0.50                    15%

Recession                   0.05.                   5%

2. Sandy Corp believes the following probability distribution exists for its stock. What is the
coefficient of variation on the company's stock?
(4 Marks)
Probability
State of
the Economy
Stock's
of State
Expected
Return
Occurring
Boom
0.45
25%
Normal
0.50
15%
Recession
0.05
5%
Answer:
Transcribed Image Text:2. Sandy Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? (4 Marks) Probability State of the Economy Stock's of State Expected Return Occurring Boom 0.45 25% Normal 0.50 15% Recession 0.05 5% Answer:
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