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Expected Returns: Discrete Distribution The market and Stock 3 have the following probability distributions: Probability 0.3 12% 20% 0.4 8 7 0.3 18
Expected Returns: Discrete Distribution The market and Stock 3 have the following probability distributions: Probability " 0.3 12% 20% 0.4 8 7 0.3 18 11 a. Calculate the expected rates of return for the market and Stock 3. Round your answers to one decimal place. Expected rate of return (Market): Expected rate of retum (Stock J): % % b. Calculate the standard deviations for the market and Stock 3. Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation (Market): 96 Standard deviation (Stock 3): % Check My Work (
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