Stocks A and B have the following probability distributions of expected future returns: a. Calculate the expected rate of retum, r^B, for Stock B(r^A=11.20%.) Da not raund intermediate calculations. Raund your answer to two decimal places. 9% b. Calculate the standard deviation of expected returns, oAA for Stock A ( CB=21.73%.) Do not round intermediate calculations. Round your answer to two decimal places. Oa Now calculate the coefricient of variation for Stack B. Do not round intermediate calculations. Round your answer to two decimal places. Is it posslble that most investors might regard Stock B as being less risky than 5tock A? I. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock Ar and hence be more risky in a portfolio sense. III. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfalio sense. IV. If Stock B is more highly correlated with the market than A, then it might have the same beta as 5 tock A, and hence be just as risky in a portfolio sense. V. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock Ar and hence be less risky in a portfolio sense. c. Assume the risk-free rate is 2.5%. What are the Sharpe ratios for Stocks A and B? Do not round intermediate calculations. Round your answers to four decimal places. Stock A: Stock B: Are these calculations consistent with the information obtained from the coefficient of variation calculations in Part b