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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (14%) (31%) 0.2 6 0 0.3 10 18
Stocks A and B have the following probability distributions of expected future returns:
Probability | A | B |
0.1 | (14%) | (31%) |
0.2 | 6 | 0 |
0.3 | 10 | 18 |
0.2 | 19 | 26 |
0.2 | 34 | 49 |
Calculate the expected rate of return, rB, for Stock B (rA = 13.40%.) Do not round intermediate calculations. Round your answer to two decimal places. %
Calculate the standard deviation of expected returns, A, for Stock A (B = 22.57%.) Do not round intermediate calculations. Round your answer to two decimal places. %
Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.
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