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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (13%) (40%) 0.2 6 0 0.3 13 23
Stocks A and B have the following probability distributions of expected future returns:
Probability | A | B |
0.1 | (13%) | (40%) |
0.2 | 6 | 0 |
0.3 | 13 | 23 |
0.3 | 22 | 27 |
0.1 | 36 | 49 |
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Calculate the expected rate of return, rB, for Stock B (rA = 14.00%.) Do not round intermediate calculations. Round your answer to two decimal places. %
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Calculate the standard deviation of expected returns, A, for Stock A (B = 22.91%.) Do not round intermediate calculations. Round your answer to two decimal places. %
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Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.
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