Question: EXPECTED RETURNS Stocks A and B have the following probability stutions of expected future returns Probability 0.1 (9) (211) 0.2 6 0 04 10 18

EXPECTED RETURNS Stocks A and B have the following probability stutions of expected future returns Probability 0.1 (9) (211) 0.2 6 0 04 10 18 0.2 24 25 0.1 35 39 a. Calculate the expected rate of return, n. for Stock = 13:00) Do not run intermediate calculations. Round your answer to two decimal places B. Calculate the standard deviation of expected returns; ou, toe Stock A ( + 15.06.) Do not sound intermediate carestation. Found your answer to two decimal places c. Now calculate the cont of variation for Stock Round your answer to two decimal places d. Is it possible that most investors might regard Stock as being less risky than Stock 1. If Stocks more highly corretted with the market then, then it might have the same bete at Stock A, and hence be just as risky in portfelis sense

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