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Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.2 -5% -34% 0.2 4 0 0.3 11 19
Stocks X and Y have the following probability distributions of expected future returns:
Probability | X | Y |
0.2 | -5% | -34% |
0.2 | 4 | 0 |
0.3 | 11 | 19 |
0.2 | 20 | 27 |
0.1 | 34 | 39
|
Calculate the expected rate of return, rY, for Stock Y (rX = 10.50%.) Round your answer to two decimal places. %
Calculate the standard deviation of expected returns, X, for Stock X (Y = 23.88%.) Round your answer to two decimal places. %
Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.
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