Determine the expected return and coefficient of variation

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Reference no: EM13928399

Given the following possible returns (dividends plus capital gains) over the com- ing year from a $10,000 investment in Ford Motor Company common stock:

State of Economy	Probability	Return
Recession	0.20	$-1,000
Normal year	0.60	1,500
Boom	0.20	2,500

Determine the

a. Expected return

b. Standard deviation of returns

c. Coefficient of variation.

Reference no: EM13928399

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