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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (8%) (36%) 0.2 5 0 0.3 16 24
Stocks A and B have the following probability distributions of expected future returns:
Probability | A | B |
0.1 | (8%) | (36%) |
0.2 | 5 | 0 |
0.3 | 16 | 24 |
0.3 | 19 | 28 |
0.1 | 34 | 37 |
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Calculate the expected rate of return, rB, for Stock B (rA = 14.10%.) Do not round intermediate calculations. Round your answer to two decimal places. %
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Calculate the standard deviation of expected returns, A, for Stock A (B = 20.69%.) Do not round intermediate calculations. Round your answer to two decimal places. %
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Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.
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