Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A stock's returns have the following distribution:
Sharpe ratio:
0.1
0.2
0.3
0.3
0.1
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:
%
Demand for the
Company's Products
Weak
Below average
Average
Above average
Strong
%
Probability of this
Demand Occurring
Rate of Return if
this Demand Occurs
(40%)
(14)
12
25
55
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Transcribed Image Text:A stock's returns have the following distribution: Sharpe ratio: 0.1 0.2 0.3 0.3 0.1 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: % Demand for the Company's Products Weak Below average Average Above average Strong % Probability of this Demand Occurring Rate of Return if this Demand Occurs (40%) (14) 12 25 55
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