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 ng distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (20%) Below average 0.1 (13) Average 0.3 18 Above average 0.3 40 Strong 0.2 64 1.0
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 ng distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (20%) Below average 0.1 (13) Average 0.3 18 Above average 0.3 40 Strong 0.2 64 1.0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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
ng distribution:
| Demand for the Company's Products |
Probability of this Demand Occurring |
this Demand Occurs |
| Weak | 0.1 | (20%) |
| Below average | 0.1 | (13) |
| Average | 0.3 | 18 |
| Above average | 0.3 | 40 |
| Strong | 0.2 | 64 |
| 1.0 |
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