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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
  1. Calculate the expected rate of return, rY, for Stock Y (rX= 13.30%.) Round your answer to two decimal places.%
  2. Calculate the standard deviation of expected returns, X, for Stock X (Y= 20.63%.) Round your answer to two decimal places.%
  3. Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.

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