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A stock has an average return of 9% and a standard deviation of 12% What are the range of return expected from this stock for one standard deviation...

A stock has an average return of 9% and a standard deviation of 12%

  • What are the range of return expected from this stock for one standard deviation ( based on Normal Distribution). For two standard deviations?
  • With the information given, what is the stock's coefficient of variation?
  • What does the CV measure? Explain

Top Answer

The range of returns for 1 standard deviation= 9%±12% 2 standard deviation=9%±24% The deviation is based on the value of... View the full answer

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