Question: Consider the following two probability distributions of expected future returns for stocks A and B: Suppose you know that the expected rate of return for

 Consider the following two probability distributions of expected future returns for

Consider the following two probability distributions of expected future returns for stocks A and B: Suppose you know that the expected rate of return for stock A is 3% and would like to calculate the expected return for stock B. The expected rate of return for stock B is approximately \%. Suppose you know that the standard deviation of expected returns for stock B is 5.0867% and would like to calculate the standard deviation of expected returns for stock A. Hint: Recall that the expected rate of return for stock A is 3%. The vanance of the expected returns for stock A is approximately While the standard deviation of expected returns for stock A is approximately %. Using your calculations in the previous parts of the problem, the coefficient of variation of stock 8 is approximately True or False: investors will always view the stock with a lower coefficient of variation as a "safer" choice when compared to a stock with a higher coefficient of variation. True raise

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