Find the expected return on the stock market

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Reference no: EM132979578

The following forecast of the market's return over the next year to answer the next three questions.

State              Probability                 Return

Boom                .25                        .30

Normal Growth    .60                         .10

Recession            .15                         -.40

Problem 1: Find the expected return on the stock market

Problem 2: What is the standard deviation of the market's expected return? Round intermediate steps and your final answer to four decimals and enter your answer in decimal format (ex: .XXXX).

Problem 3: Find the coefficient of variation. Round intermediate steps and your final answer to four decimals.

Reference no: EM132979578

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