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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 |
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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): %
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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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