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Stocks A and B have the following probability distributions of expected future returns: % % Now calculate the coefficient of variation for Stock B .
Stocks A and B have the following probability distributions of expected future returns:
Now calculate the coefficient of variation for Stock B Do not round intermediate calculations. Round your answer to two decimal places.
Is it possible that most investors might regard Stock B as being less risky than Stock A
I. If Stock B is more highly correlated with the market than A then it might have a higher beta than Stock A and hence be less risky in a portfolio sense.
II If Stock is more highly correlated with the market than then it might have a lower beta than Stock and hence be less risky in a portfolio sense.
IV If Stock is less highly correlated with the market than then it might have a lower beta than Stock and hence be less risky in a portfolio sense.
Stock A:
Stock B:
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