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Roenfeld Corp Believes the Following Probability Distribution Exists for Its

Question 135

Multiple Choice

Roenfeld Corp believes the following probability distribution exists for its stock.What is the coefficient of variation on the company's stock? Do not round your intermediate calculations.  State of  Frobability  Stock’s  the  of State  Expected  Economy  Occurring  Return  Boom 0.1925% Normal 0.5015% Recession 0.315%\begin{array}{llr}\text { State of } & \text { Frobability } & \text { Stock's } \\\text { the } & \text { of State } & \text { Expected } \\\text { Economy } & \text { Occurring } & \text { Return }\\\hline \text { Boom } & 0.19 & 25 \% \\\text { Normal } & 0.50 & 15 \% \\\text { Recession } & 0.31 & 5 \%\end{array}
?


A) 0.6565
B) 0.6060
C) 0.5050
D) 0.4545
E) 0.4292

Correct Answer:

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