XYZ stock's returns will have the following probability distribution during the possible states of the economy. a. Calculate the expected return on XYZ stock. b. Calculate the standard devivation of XYZ stock returns. c. Calculate the coefficient of variation of XYZ stock. State of Economy Probability Return Boom 30% 32.50% Normal 40% 10.25% Recession 30% -15.75%

XYZ stock's returns will have the following probability distribution during the possible states of the economy. a. Calculate the expected return on XYZ stock. b. Calculate the standard devivation of XYZ stock returns. c. Calculate the coefficient of variation of XYZ stock. State of Economy Probability Return Boom 30% 32.50% Normal 40% 10.25% Recession 30% -15.75%

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section: Chapter Questions

Problem 14P

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