Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The market and Stock J have the following probability distributions: Probability r M r J 0.3 13 % 20 % 0.4 9 7 0.3 18
The market and Stock J have the following probability distributions:
Probability | rM | rJ | ||
0.3 | 13 | % | 20 | % |
0.4 | 9 | 7 | ||
0.3 | 18 | 13 |
-
Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place.
Expected rate of return (Market): %
Expected rate of return (Stock J): %
-
Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places.
Standard deviation (Market): %
Standard deviation (Stock J): %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started