EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.2 0.3 0.3 (11%) (3496) 12 20 36 19 30 42 a. Calculate the expected rate of return, rB, for Stock B (ra-12.709.) Do not round intermediate calculations. Rou places b. Calculate the standard deviation of expected returns, oa, for Stock A (0-20.74%.) Do not round intermediate ca to two decimal places. c. Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places. d. Is it possible that most investors might regard Stock B as being less risky than Stock A? 1. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and henc I. If Stock B is more highly correlated with the market than A, then it might have a higher beta than Stock A, and hend 111. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence TV. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence b