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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (8%) (31%) 0.1 4 0 0.6 11 18
Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (8%) (31%) 0.1 4 0 0.6 11 18 0.1 22 28 0.1 40 50 a. Calculate the expected rate of return, TB, for Stock B (TA = 12.40%.) Do not round intermediate calculations. Round your answer to two decimal places. % b. Calculate the standard deviation of expected returns, OA, for Stock A (OB = 19.46%.) Do not round intermediate calculations. Round your answer to two decimal places.
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