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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 13 % 20 % 0.4

Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability rM rJ
0.3 13 % 20 %
0.4 10 6
0.3 19 10

  1. Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place.

    Expected rate of return (Market): %

    Expected rate of return (Stock J): %

  2. Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places.

    Standard deviation (Market): %

    Standard deviation (Stock J):

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