A stock's returns have the following distribution: Demand for the Company's Products...
60.1K
Verified Solution
Link Copied!
Question
Finance
A stock's returns have the following distribution:
Demand for the Company's Products
Probability of this Demand Occurring
Rate of Return if this Demand Occurs
Weak
0.1
(26%)
Below average
0.1
(13)
Average
0.3
18
Above average
0.3
37
Strong
0.2
65
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: %
Standard deviation: %
Coefficient of variation:
Sharpe ratio:
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
