Expected Returns The market and Stock J have the following probability distributions: Probability 0.3 0.4 0.3 15% Required Rate 18 20% 5 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J. c. Calculate the coefficients of variation for the market and Stock J. 12%. Suppose TRF = 5%, IM = 10%, and rA a. Calculate Stock A's beta. Required Rate of Return b. If Stock A's beta were 2.0, what would be A's new required rate of return? Suppose IRF = 9%, IM = 14%, and b 1.3. a. What is r, the required rate of return on Stock i? of Return b. IM and r? c. Now suppose TRF (1) increases to 10 percent or (2) decreases to 8 percent. The slope of the SML remains constant. How would this affect Now assume TRF remains at 9 percent but TM (1) increases to 16 percent or (2) falls to 13 percent. The slope of the SML does not remain constant. How would these changes affect r