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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
  1. Calculate the expected rate of return, , for Stock B ( = 13.30%.) Do not round intermediate calculations. Round your answer to two decimal places.

    %

  2. 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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