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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?  Probability  Stock’s State of of State Expected the Economy  Occurring  Return  Boom 0.4525% Normal 0.5015% Recession 0.055%\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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