Given the following possible returns (dividends plus capital gains) over the coming year from P100,000 investment in General Motors common stock: State of Economy Profitability Return Recession 0.20 P-1,000 Normal year 0.60 1,500 Boom 0.20 2,500 What is the coefficient of variation?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.4: Valuing Common Stocks
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Given the following possible returns (dividends plus capital gains) over the coming year from P100,000 investment in  General Motors common stock:

    State of Economy           Profitability             Return
Recession                                0.20                    P-1,000      
Normal year                            0.60                       1,500
Boom                                      0.20                        2,500

What is the coefficient of variation?

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