Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1
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Question:
Stocks A and B have the following probability distributions of expected future returns:
Probability A B
0.1 (6 %) (31 %)
0.1 4 0
0.6 13 19
0.1 18 26
0.1 37 38
Calculate the expected rate of return, , for Stock B ( = 13.10%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 17.57%.) Do not round intermediate calculations.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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