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Macintosh Lumber Believes the Following Probability Distribution Exists for Its

Question 71

Multiple Choice

Macintosh Lumber 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} { l c c } & \text { Probability } & \text { Stock's } \\\text { State of } & \text { of State } & \text { Expected } \\\text { the Economy }& \text { Occurring } & \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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