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The market and Stock J have the following probability distributions: Probability r M r J 0.3 14.00 % 22.00 % 0.4 10.00 5.00 0.3 17.00
The market and Stock J have the following probability distributions:
Probability | rM | rJ | ||
0.3 | 14.00 | % | 22.00 | % |
0.4 | 10.00 | 5.00 | ||
0.3 | 17.00 | 10.00 |
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
- Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 2 % Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 3 %
- Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 4 % Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 5 %
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