Stocks A and B have the following probability distributions of expected future returns: ...
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Accounting
Stocks A and B have the following probability distributions of expected future returns:
Probability
A
B
0.1
(11%)
(29%)
0.2
2
0
0.4
12
20
0.2
18
30
0.1
36
44
A. Calculate the expected rate of return, rB, for Stock B (rA = 11.30%.) Do not round intermediate calculations. Round your answer to two decimal places.
B. Calculate the standard deviation of expected returns, A, for Stock A (B = 19.43%.) Do not round intermediate calculations. Round your answer to two decimal places.
C. Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.
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