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RE Problem 20: As a financial manager you are considering the following probability distributions of returns for stocks A and B: Probability RA 0.3 15%

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RE Problem 20: As a financial manager you are considering the following probability distributions of returns for stocks A and B: Probability RA 0.3 15% 20% 0.4 5% 0.3 18% 12% 1) Calculate the probability-weighted expected rates of return for stock A and stock B: 9% 2) Evaluate and compare the riskiness of these stocks by using standard deviation and coefficient of variation (CV)

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