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The market and Stock J have the following probability distributions: Probability rM rJ 0.2 12% 16% 0.3 8 7 0.5 20 13 Calculate the expected

The market and Stock J have the following probability distributions:

Probability rM rJ

0.2 12% 16%

0.3 8 7

0.5 20 13

Calculate the expected rates of return for the market and Stock J.

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