Question
Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (9 %) (22 %) 0.2 4 0 0.5
Stocks A and B have the following probability distributions of expected future returns:
Probability A B 0.1 (9 %) (22 %) 0.2 4 0 0.5 13 21 0.1 20 29 0.1 29 37 Calculate the expected rate of return, , for Stock B ( = 11.30%.) Do not round intermediate calculations. Round your answer to two decimal places. %
Calculate the standard deviation of expected returns, A, for Stock A (B = 16.37%.) Do not round intermediate calculations. Round your answer to two decimal places. %
Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places.
Assume the risk-free rate is 3.5%. 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:
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Everything I Touch Turns To Sold Weekly And Montaly 2022 Planner
Authors: Printed Bliss Planners
1st Edition
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