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Problem 4- 18 points @ 2 points for each correct answer The market and stock j and k have the following probability distribution: Probability Im

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Problem 4- 18 points @ 2 points for each correct answer The market and stock j and k have the following probability distribution: Probability Im n 0.1 10.00% 12.00% -10.00% 0.2 15.00% 13.00% -15.00% 0.4 20.00% 14.00% -20.00% 0.2 -10.00% 15.00% 10.00% 0.1 -20.00% 16.00% 20.00% part a ) Calculate the expected rate of return for market, stock j and stock k part b) Calculate the variance of return for market, stock j and stock k part c) Calculate the standard deviation of return for market, stock j and stock k part a) Expected return rm = part b) Variance Tk = = Im = r = part c) Standard deviation (square root of variance) I'm fk = Tx = Tk =

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