EXPECTED RETURNS

Stocks A and B have the following probability distributions of expected future returns:

Probability	A	B
0.1	(12%)	(20%)
0.2	6	0
0.4	16	19
0.2	21	25
0.1	34	41

Calculate the expected rate of return, rB, for Stock B (rA = 14.00%.) Do not round intermediate calculations. Round your answer to two decimal places. %

Calculate the standard deviation of expected returns, ?A, for Stock A (?B = 16.17%.) Do not round intermediate calculations. Round your answer to two decimal places. %

Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.