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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
  1. 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. %

  2. 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. %

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

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