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

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
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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
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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