Probability distribution exists for its stock

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Apple believes the following probability distribution exists for its stock. 

1. Find the expected return for this security?

2. Find the variance and standard deviation?

3. What is the coefficient of variation for Apple?

4. The coefficient of variation (CV) is the standard deviation divided by the expected return. If the CV for Google is 0.5, compare Apple's variation in stock price to Google. What conclusions can you draw?

                                                              Probability                    Stock's

                       State of                             of State                     Expected

                       the Economy                  Occurring                     Return 

                       Boom                                  0.45                            25%

                       Normal                               0.50                            15%

                       Recession                           0.05                             5%

Reference no: EM132265899

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