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Expected returns Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 -11% -37% 0.2 5 0 0.3
Expected returns
Stocks X and Y have the following probability distributions of expected future returns:
Probability | X | Y |
0.1 | -11% | -37% |
0.2 | 5 | 0 |
0.3 | 11 | 18 |
0.3 | 23 | 28 |
0.1 | 32 | 39 |
- Calculate the expected rate of return, rY, for Stock Y (rX= 13.30%.) Round your answer to two decimal places.%
- Calculate the standard deviation of expected returns, X, for Stock X (Y= 20.63%.) Round your answer to two decimal places.%
- Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.
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