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i have no idea how to do this ESCOR Problem Walkthrough Stocks A and B have the following probability distributions of expected future returns Probability

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ESCOR Problem Walkthrough Stocks A and B have the following probability distributions of expected future returns Probability 0.1 0.2 0.4 0.2 (28%) 0 (12%) 5 13 23 30 22 26 50 0.1 Calculate the expected rate of return, , for Stock B (A-12.60%) Do not round intermediate calculations. Round your answer to two decimal places 6. Calculate the standard deviation of expected returns, or for Stock A(n-19.879.) Do not round intermediate calculations, Round your answer to two decimal places Now calculate the coefficient of variation for Stock B. Do not round intermediate actions. Round your answer to two decimal places Is it possible that most investors might regard Stock B as being less risky than Stock A? 1. If Stock is more highly correlated with the market than then it might have the same bets Stock A, and hence be just as risky na portfolio sense Stocks highly correlated with the market than then it might have a lower than Stock A, and hence be less risky in a portfolio sense III Stock is less highly correlated with the market than then it might have her beathan Stock and hence be more risk in a portfolio sense IV. stock is more highly correlated with the market than A, then it might have a higher its than Stock A, and hence be les risky na portfolio sen. V 1 Stock is more correlated with the market than then it might have a lower beat Stock And hence be less in a portfolio sense Assume the rak free 1. What are the sharperation for Stocks A and B Do not found intermediate action Hound your annan to four decimal place Stock SKB Are the contentiom consistent with the information obtained from the coefficient of variation extentions sport? tasand norsk sense se ky than 1 Stock is more to correitet weh treuren, then it might have the same bet** Stock A, and hence be just as niakyma portfolio 11. In a stand alone Pink sense in rially than 0.11 Stock 8 sies highly correlated with the market than then it might have a lower beta than the A, and hence de les rinky na II. In stand-alone by then I see y corried with the market that have a higher Betthon and here resina pro sense IV in stand wonen sense A la more than I Stock Norvented with the market Athen it mont have we beta than Stock A, and henow been porto In a wandalone sense Ameriky than I Stock scorrelated with the mean them have the beathan McA and hence be more skins portfolio sense portfolio EU

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