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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (11 %) (32 %) 0.1 3 0 0.5

Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (11 %) (32 %) 0.1 3 0 0.5 14 19 0.2 20 28 0.1 36 40

a. Calculate the expected rate of return, , for Stock B ( = 13.80%.)

b. Calculate the standard deviation of expected returns, A, for Stock A (B = 18.62%.)

c. calculate the coefficient of variation for Stock B.

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