Stocks A and B have the following probability distributions of expected future returns: a. Calculate the expected rate of return, r^B, for Stock B(rA=11.50%.) Do not round intermediate calculations, Round your answer to tw. decimal olaces. % b. Calculate the standard deviation of expected returns, A, for S stock A(B=20.03%.) 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 piaces. c. Assume the risk-free rate is 3.5%. What are the Sharpe ratios for Stocks A and B? Do not round intermediate caiculations. Round your answers to four decimal places. Stock. A: Stockis: Are these calculations consistent with the information obtained from the coefficient of variation calculations in Part b? 1. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than A, then it might have a higher bets than Stock A, and hence be more risky in a portfolio sense. 11. In a stand-alone risk sense A is less risky than B. If stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense. 1II. In a stand-alone risk sense A is less risky than B. If Stock B is less highly correlated with the market than A. then it might have a lower beta than 5 tock A, and hence be less risky in a portfollo sense. IV. In a stand-alone risk sense A is less risky than B. If Stock B is less highly correlated with the market than A, then it mighe Bave a higher beta than Stock A, and hence be more risky in a portfolio sense. V. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than A, then it might kave a lower beta than 5 tock A, and hence be less risky in a portfollo sense