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Expected Returns: discrete Distribution The market and Stock J have the following probability distributions: Probability r M r J 0.3 15.00 % 20.00 % 0.4
Expected Returns: discrete Distribution
The market and Stock J have the following probability distributions:
| Probability | rM | rJ | ||
| 0.3 | 15.00 | % | 20.00 | % |
| 0.4 | 10.00 | 4.00 | ||
| 0.3 | 20.00 | 13.00 | ||
- Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places. _______2 % Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. ______3 %
- Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places. ______ 4 % Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. _____ 5 %
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
