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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (12%) (33%) 0.2 3 0 0.3 16 22
Stocks A and B have the following probability distributions of expected future returns:
Probability | A | B |
0.1 | (12%) | (33%) |
0.2 | 3 | 0 |
0.3 | 16 | 22 |
0.3 | 19 | 30 |
0.1 | 36 | 36 |
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Calculate the expected rate of return, rB, for Stock B (rA = 13.50%.) 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 = 20.02%.) 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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