In: Finance
Hooper Chemical Company, a major chemical firm that uses such
raw materials as carbon and petroleum as part of its production
process, is examining a plastics firm to add to its operations.
Before the acquisition, the normal expected outcomes for the firm
were as follows:
Outcomes ($ millions) |
Probability | |||||
Recession | $ | 10 | 0.2 | |||
Normal economy | 50 | 0.4 | ||||
Strong economy | 70 | 0.4 | ||||
Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition. (Do not round intermediate calculations. Enter your dollar answers in millions rounded to 2 decimal places (e.g., $12,300,000 should be entered as "12.30"). Round the coefficient of variation to 3 decimal places.)