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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (13 %) (25 %) 0.2 6 0 0.5
Stocks A and B have the following probability distributions of expected future returns:
Probability | A | B | ||
0.1 | (13 | %) | (25 | %) |
0.2 | 6 | 0 | ||
0.5 | 15 | 22 | ||
0.1 | 22 | 29 | ||
0.1 | 37 | 40 |
- Calculate the expected rate of return, , for Stock B ( = 13.30%.) Do not round intermediate calculations. Round your answer to two decimal places.
%
- Calculate the standard deviation of expected returns, A, for Stock A (B = 17.65%.) 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 places.
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