Computaion of variance of a stock on different economy

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Computaion of variance of a stock on different economy

Ripken Iron Works faces the following probability distribution:

State of the Economy

Probability of State Occurring

Stock's Expected Return if this State Occurs

Boom

0.25

25%

Normal

0.5

15%

Recession

0.25

5%

What is the coefficient of variation on the company's stock? (Assume that the standard deviation is calculated using the population statistic.)

Reference no: EM1316465

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