A
stock's returns have the following distribution 
Demand
for the             Probability
of This       Rate of Return If This 
Company’s
Products    Demand Occurring      Demand Occurs 
Weak
                                                  0.1
                  (50 %) 
Below
average                                     
0.2                  (5) Average 0.4 16
Above Average 0.2 25
Strong 0.1 60
1.0
Calculate
the stock's expected return, standard deviation, and coefficient of variation.
11.4 may be the answer
SOLUTION PREVIEW
rˆ = (0.1) (-50%) + (0.2)(-5%) + (0.4)(16%) + (0.2)(25%) + (0.1)(60%)
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