Risk as well as return of a stock involves calculation

Reference no: EM1316488

Risk as well as return of a stock involves calculation of expected return, standard deviation and variation

Expected return A stock's returns have the following distribution:

Demand for the Demand Occurring	Probability of this if this Demand Occurs	Rate of Return Company's Products
Weak	0.1	(50%)
Below Average	0.2	(5)
Average	0.4	16
Above Average	0.2	25
Strong	0.1	60
	-------	------
	1

Calculate the stock's expected return, standard deviation, and coefficient of variation.

Reference no: EM1316488

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