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Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 -15% -27% 0.2 2 0 0.3 11 20

Stocks A and B have the following probability distributions of expected future returns:

Probability

A

B

0.2

-15%

-27%

0.2

2

0

0.3

11

20

0.2

21

26

0.1

30

39

Calculate the expected rate of return, rB, for Stock B (rA = 7.90%.) Do not round intermediate calculations. Round your answer to two decimal places. %

Calculate the standard deviation of expected returns, A, for Stock A (B = 21.42%.) Do not round intermediate calculations. Round your answer to two decimal places. %

Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.

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