A stock's returns have the following distribution: Dmd for Company's Products Probability of Dmd Occurring...
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Accounting
A stock's returns have the following distribution:
Dmd for Company's ProductsProbability of Dmd Occurring Rate Rtn if Dmd Occurs
Weak 0.1 (32%)
Below average 0.2 (13%)
Average 0.3 18
Above Average 0.3 34
Strong 0.1 64
Assume the risk-free rate is 2%. 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
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