Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability	rM	rJ
0.3	12%	21%
0.4	10	4
0.3	17	12

a.Calculate the expected rate of return for the market. Round your answer to two decimal places. % b. Calculate the expected rate of return for Stock J. Round your answer to two decimal places. %

c. Calculate the standard deviation for the market. Round your answer to two decimal places. % d. Calculate the standard deviation for Stock J. Round your answer to two decimal places. %