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Now its time for you to practice what youve learned. Consider the following two probability distributions of expected future returns for stocks A and B:
Now its time for you to practice what youve learned. Consider the following two probability distributions of expected future returns for stocks A and B: Probability Return Stock A Stock B (%) (%) 0.1 -8% -28% 0.2 1.6 0 0.4 9.6 16 0.2 16 20 0.1 30.4 36 Suppose you know that the expected rate of return for stock A is 9.6% and would like to calculate the expected return for stock B. The expected rate of return for stock B is approximately %. Suppose you
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