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A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return...

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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
Weak0.2(42%)
Below average0.2(6)   
Average0.313  
Above average0.122  
Strong0.247  
1.0

Assume the risk-free rate is 2%. Calculate the stock's expectedreturn, standard deviation, coefficient of variation, and Sharperatio. Do not round intermediate calculations. Round your answersto two decimal places.

Stock's expected return:   %

Standard deviation:   %

Coefficient of variation:

Sharpe ratio:

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Transcribed Image Text

A stock's returns have the following distribution:Demand for theCompany's ProductsProbability of ThisDemand OccurringRate of Return IfThis Demand OccursWeak0.2(42%)Below average0.2(6)   Average0.313  Above average0.122  Strong0.247  1.0Assume the risk-free rate is 2%. Calculate the stock's expectedreturn, standard deviation, coefficient of variation, and Sharperatio. Do not round intermediate calculations. Round your answersto two decimal places.Stock's expected return:   %Standard deviation:   %Coefficient of variation:Sharpe ratio:

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