You were analyzing a stock and came up with the following probability distribution of the stock returns.  What is the coefficient of variation on the company's stock? State of the Economy Probability of State Occurring Stock's Expected Return Boom 35.00% 26.80% Normal 46.00% 13.95% Recession 19.00% 7.55%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.4: Valuing Common Stocks
Problem 3ST
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You were analyzing a stock and came up with the following probability distribution of the stock returns.  What is the coefficient of variation on the company's stock?

State of the Economy
Probability of State Occurring
Stock's Expected Return
Boom
35.00%
26.80%
Normal
46.00%
13.95%
Recession
19.00%
7.55%
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