Question
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 (6%) (31%) 0.2 2 0 0.3
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 (6%) (31%) 0.2 2 0 0.3 10 22 0.2 22 25 0.1 31 48 Calculate the expected rate of return, rB, for Stock B (rA = 9.70%.) Do not round intermediate calculations. Round your answer to two decimal places. 10.2 % Calculate the standard deviation of expected returns, ?A, for Stock A (?B = 24.26%.) 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.
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