Question: Excel Online Structured Activity: Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability r M r J 0.3 15.00
Excel Online Structured Activity: Expected Returns: Discrete Distribution
The market and Stock J have the following probability distributions:
| Probability | rM | rJ | ||
| 0.3 | 15.00 | % | 18.00 | % |
| 0.4 | 8.00 | 4.00 | ||
| 0.3 | 17.00 | 12.00 | ||
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
- Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places.
- Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.
- Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.
- Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.
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