Stooks A and have the following probability distribution of expected future returns Probability A 0.1 (13) (35%) 0.2 3 0 0.2 15 19 0.4 22 25 0.1 25 35 2. Calculate the expected rate of return, Pa, for stock (A = 13.90%) Do not found intermediate calculations. Round your answer to two decimal places b. Calculate the standard deviation of expected returns, ow For Stock A (0-19.41) Do not found intermediate calculations, Round your answer to two cemal poor. Now calculate the coefficient of variation for Stock B. Round your answer to the decimal places Is it possible that most investors might regard Stock as being less risky than Stock A? 1. Stock is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfoo sense II. Stock this more correlated with the market than then it might have the same beta as Stock A, and hence be just as risky is a portfolio sense. III. 1 Stock is less highly correlated with the market than then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense IV. If Stock is less highly correlated with the market than A then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense V. If Stock is more highly correlated with the market than then it might have a higher bice than Stock A, and hence be less risky in a portfolio sense Select 2. Assume the nisk free rate is 3.0% What are the Sharpe ratios for Stocks A and 17 do not round intermediate calculations. Round your answers to two decimal place Stock Stock B Are these calculations consistent with the information obtained from the coffident of variation calculations in Part ? In a stand-alone risk sense A is less risky than 8. Stock is less highly correlated with the market than, then it might have a higher beta thon Stock A, and hence be more nisky na portfolio sense It in a stand-alone risk sense is more risky than B. 17 Stock is less highly correlated with the market than then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense HIL In a stand-alone risk sense A more risky than B. Stock is less highly correlated with the market than then it might have a higher beta thon Stock A, and hence be more risky in a portfolio sense IV. In a stand-alok sense A is less risky than I Stock is more highly correlated with the market than then it might have the same bets as Stock A, and hence be just as may na portali sene V. In and intriske A is less than B. Stock is less Nighly correlated with the market than A, then it might have a lower beta than Stock A, and hence beletrisk in a portfolio