Roenfeld Corp Believes the Following Probability Distribution Exists for Its

question 77

Multiple Choice

Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? $\begin{array}{lrr}&\text { Probability } &\text { Stock's }\\\text {State of}&\text { of State }&\text {Expected}\\ \underline{\text { the Economy }} & \underline{\text { Occurring }} &\underline{ \text { Return }} \\\text { Boom }& 0.45 & 25 \% \\\text { Normal } & 0.50 & 15 \% \\\text { Recession } & 0.05 & 5 \%\end{array}$

• A) 0.2839
• B) 0.3069
• C) 0.3299
• D) 0.3547
• E) 0.3813

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