Stocks A and B have the following probability distributions of expected future returns:a. Calculate the expected rate of return, r^'_B, for Stock B (r^'_A= 12%).
b. Calculate the standard deviation of expected returns, σ_A, for Stock A (σ_B= 20.35%). Now calculate the coefficient of variation for Stock B. Is it possible that most investors will regard Stock B as being less risky than Stock A? Explain.
c. Assume the risk-free rate is 2.5%. What are the Sharpe ratios for Stocks A and B? Are these calculations consistent with the information obtained from the coefficient of variation calculations in part b? Explain.

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Probability B. 0.1 (10%) (35%) 0.2 0.4 12 20 0.2 20 25 0.1 38 45 2.