Click here to read the eBook: Stand-Alone Risk EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (8%) (21%) 0.2 6 0 0.4 10 18 0.2 24 25 0.1 38 39 a. Calculate the expected rate of return, rb, for Stock B (rA = 13.00%.) Do not round intermediate calculations. Round your answer to two decimal places. 1.4 % b. Calculate the standard deviation of expected returns, CA, for Stock A (OB = 15.96%.) Do not round intermediate calculations. Round your answer to two decimal places. 2.5 % C. Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places. 1.14 d. Is it possible that most investors might regard Stock B as being less risky than Stock A? I. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense. II. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio