Question
The market and Stock J have the following probability distributions: Probability rM rJ 0.3 13.00 % 19.00 % 0.4 10.00 7.00 0.3 18.00 10.00 The
The market and Stock J have the following probability distributions: Probability rM rJ 0.3 13.00 % 19.00 % 0.4 10.00 7.00 0.3 18.00 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. Open spreadsheet
Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places. %
Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. %
Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.%
Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. %
| Expected Returns: Discrete Distribution | ||||||
| Probability Distributions: | ||||||
| Probability | rM | rJ | ||||
| 0.3 | 13.00% | 19.00% | ||||
| 0.4 | 10.00% | 7.00% | ||||
| 0.3 | 18.00% | 10.00% | ||||
| rM | rJ | Formulas | ||||
| Expected return | #N/A | #N/A | ||||
| Standard deviation | #N/A | #N/A | ||||
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
