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The market and Stock J have the following probability distributions: Probability r M r J 0.2 15% 20% 0.3 9 5 0.5 18 12 Calculate

The market and Stock J have the following probability distributions:

Probability rM rJ

0.2 15% 20%

0.3 9 5

0.5 18 12

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

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