Stocks A and $B$ have the following probability distributions of expected future returns:

a$.$ Calculate the expected rate of return, $r_B,$ for Stock $)$ Do not round intermediate calculations. Round your answer to two

decimal places.

$\%$

b$.$ Calculate the standard deviation of expected returns, ${}_A,$ for Stock $A({}_B=17\mathrm{.}13\%.)$ Do not round intermediate calculations. Round your

answer to two decimal places.

$\%$

c$.$ Now calculate the coefficient of variation for Stock B$.$ Round your answer to two decimal places.

d$.$ Is it possible that most investors might regard Stock $B$ as being less risky than Stock $A?$

I. If Stock B is less highly correlated with the market than $A,$ then it might have a higher beta than Stock $A,$ and hence be more risk

a portfolio sense.

II$.$ If Stock B is more highly correlated with the market than $A,$ then it might have a higher beta than Stock $A,$ and hence be less risk

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

a portfolio sense.

IV$.$ If Stock B is more highly correlated with the market than A$,$ then it might have the same beta as Stock A$,$ and hence be just as ri:

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 $A,$ and hence be less risky

portfolio sense.