Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 7% return, and a 20% chance of producing a –24% return. What is the firm’s coefficient of variation of return? Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Expert Solution

Solution :

The firm's coefficient of variation of return is = 2.02

Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.

jeff jeffy answered 1 year ago

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