Your rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year are:

KAYLEIGH COSMETICS CO$.$

Possible Rate of Return Probability

$-0\mathrm{.}650\mathrm{.}10$

$-0\mathrm{.}300\mathrm{.}10$

$0\mathrm{.}050\mathrm{.}10$

$0\mathrm{.}200\mathrm{.}20$

$0\mathrm{.}550\mathrm{.}15$

$0\mathrm{.}850\mathrm{.}35$

Your rate of return expectations for the common stock of Gray Cloud Company during the next year are:

GRAY CLOUD CO$.$

Possible Rate of Return Probability

$-0\mathrm{.}100\mathrm{.}10$

$0\mathrm{.}050\mathrm{.}20$

$0\mathrm{.}200\mathrm{.}30$

$0\mathrm{.}300\mathrm{.}40$

Compute the expected return $[$E$($Ri$)]$ on stock of Kayleigh Cosmetics Company, the variance of this return $(\backslash$sigma $2),$ and its standard deviation $(\backslash$sigma $).$ Do not round intermediate calculations. Round your answers for the expected return and standard deviation to two decimal places and for the variance of this return to four decimal places.

E$($RKCC $)$:

$\%$

$\backslash$sigma $2$ :

$\backslash$sigma :

$\%$

Compute the expected return $[$E$($R i$)]$ on stock of Gray Cloud Company, the variance of this return $(\backslash$sigma $2),$ and its standard deviation $(\backslash$sigma $).$ Do not round intermediate calculations. Round your answers for the expected return and standard deviation to two decimal places and for the variance of this return to four decimal places.

E$($RGCC $)$:

$\%$

$\backslash$sigma $2$ :

$\backslash$sigma :

$\%$

On the basis of expected return $[$E$($Ri$)]$ alone, discuss whether Gray Cloud or Kayleigh Cosmetics is preferable.

Based on $[$E$($Ri$)]$ alone,

$-$Select$-$

$$s stock is preferable.

On the basis of standard deviation $(\backslash$sigma $)$ alone, discuss whether Gray Cloud or Kayleigh Cosmetics is preferable.

Based on standard deviation alone,

$-$Select$-$

$$s stock is preferable.

Compute the coefficients of variation $($CVs$)$ for Gray Cloud and Kayleigh Cosmetics and discuss which stock return series has the greater relative dispersion. Round your answers to two decimal places.

CVKCC :

CVGCC :

Based on CV$,$

$-$Select$-$

has the greater relative dispersion.