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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (14 %) (29 %) 0.2 3 0 0.5
Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (14 %) (29 %) 0.2 3 0 0.5 16 22 0.1 19 28 0.1 34 48 Calculate the expected rate of return, , for Stock B ( = 12.50%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, A, for Stock A (B = 19.71%.) Do not round intermediate calculations. Round your answer to two decimal places. % Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places. Is it possible that most investors might regard Stock B
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