Question
The market and Stock J have the following probability distributions: Probability r M r J 0.3 14.00 % 21.00 % 0.4 8.00 6.00 0.3 19.00
The market and Stock J have the following probability distributions:
| Probability | rM | rJ | ||
| 0.3 | 14.00 | % | 21.00 | % |
| 0.4 | 8.00 | 6.00 | ||
| 0.3 | 19.00 | 11.00 | ||
The data has been collected in the Microsoft Excel Online file below.
A. 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.
B. 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.
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Advanced Bond Portfolio Management
Authors: Frank J. Fabozzi, Lionel Martellini, Philippe Priaulet
1st Edition
0471678902, 9780471678908
