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Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10% 8% 2
Consider the following probability distribution for stocks A and B:
State | Probability | Return on Stock A | Return on Stock B |
1 | 0.10 | 10% | 8% |
2 | 0.20 | 13 | 7 |
3 | 0.20 | 12 | 6 |
4 | 0.30 | 14 | 9 |
5 | 0.20 | 15 | 8 |
The expected rates of return of stocks A and B are _____ and _____, respectively
Group of answer choices
14%; 10%
13.2%; 7.7%
13.2%; 9%
7.7%; 13.2%
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