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ate 8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of 6-12 expected future returns: Probability 0.1 0.2 0.4 0.2 0.1 (10%)

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ate 8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of 6-12 expected future returns: Probability 0.1 0.2 0.4 0.2 0.1 (10%) 2 12 20 38 (35%) 20 25 45 a. Calculate the expected rate of return, for Stock B G,-12%). b. Calculate the standard deviation of expected returns, Ar for Stock A ( 20 .35%). Now calculate the coefficient of variation for Stock B. Is it possible that most investors will regard Stock B as being less risky than Stock A? Explain

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