
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
A 142.

Transcribed Image Text:Researchers forecast the possible five economy states and their probabilities for the year 2023 as shown below.
Also provided are the Stock return estimates in each of those five economic states.
Economy State Probability Stock Returns
Big Recession
Mild Recession
Normal
Mild Boom
Mega Boom
0.20 -27.0%
0.15 -7.0%
0.40 15.0%
0.15 30.0%
0.10 45.0%
How much is the Coefficient of Variation (CV) of stock returns in the year 2023?
Enter your answer in the following format: 0.1234
Hint: Answer is between 2.3978 and 2.9248
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