Problem 6-06 Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability	rM	rJ
0.3	12%	21%
0.4	9	3
0.3	20	11

1. Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. %