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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (8 %) (24 %) 0.1 2 0 0.6
Stocks A and B have the following probability distributions of expected future returns:
Probability | A | B | ||
0.1 | (8 | %) | (24 | %) |
0.1 | 2 | 0 | ||
0.6 | 14 | 18 | ||
0.1 | 23 | 30 | ||
0.1 | 35 | 39 |
- Calculate the expected rate of return, , for Stock B ( = 13.60%.) Do not round intermediate calculations. Round your answer to two decimal places.
%
- Calculate the standard deviation of expected returns, A, for Stock A (B = 16.12%.) Do not round intermediate calculations. Round your answer to two decimal places.
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