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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (10%) (23%) 0.2 2 0 0.3 15 24

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

Probability A B
0.1 (10%) (23%)
0.2 2 0
0.3 15 24
0.3 18 30
0.1 35 43

A. Calculate the expected rate of return, rB, for Stock B (rA = 12.80%.) 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 = 18.69%.) 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.

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