A stock's returns have the following distribution: Demand for the company's probability of this demand product occurring weak 10% below average 10% 30% 30% 20% average above average strong Rate of return if this demand occurs -30% -14% 11% 20% 45% Assume the risk-free rate is 2.8%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. exp return =13.90%, std dev=21.86%, CV=1.57, and sharpe ratio =0.54 exp return = 13.90%, std dev= 21.86%, CV=0.57, and sharpe ratio =0.54 exp return = 13.90%, std dev=21.86%, CV=1.57, and sharpe ratio =0.51 exp return = 3.90%, std dev=11.86%, CV=2.57, and sharpe ratio =0.59
A stock's returns have the following distribution: Demand for the company's probability of this demand product occurring weak 10% below average 10% 30% 30% 20% average above average strong Rate of return if this demand occurs -30% -14% 11% 20% 45% Assume the risk-free rate is 2.8%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. exp return =13.90%, std dev=21.86%, CV=1.57, and sharpe ratio =0.54 exp return = 13.90%, std dev= 21.86%, CV=0.57, and sharpe ratio =0.54 exp return = 13.90%, std dev=21.86%, CV=1.57, and sharpe ratio =0.51 exp return = 3.90%, std dev=11.86%, CV=2.57, and sharpe ratio =0.59
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 14P
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