Ask Question
12 December, 07:10

Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Probability Stock's State of of State Expected the Economy Occurring Return Boom 0.45 25% Normal 0.5 15% Recession 0.05 5% 0.2839 0.3069 0.3299 0.3547 0.3813

+1
Answers (1)
  1. 12 December, 07:28
    0
    Answer: 0.3069

    Explanation:

    Probability ofReturn Deviation Squared State Prob. This state This state from Mean Deviation * Sq. Dev. 0.45 25.00% 6.00% 0.36% 0.1620% 0.50 15.00% - 4.00% 0.16% 0.0800% 0.05 5.00% - 14.00% 1.96% 0.0980% Expected return = 19.00% 0.34% 0.3400% = Expected variance σ = 5.83% Coefficient of variation = σ/Expected return = 0.3069
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers