Question: NEED HELP WITH B Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability f r] 0.3 16% 22% 0.4

NEED HELP WITH B

NEED HELP WITH B Expected Returns: Discrete Distribution The market and Stock

Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability f r] 0.3 16% 22% 0.4 8 4 0.3 19 11 a. Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place. Expected rate of return (Market): 13.7 % Expected rate of return (Stock J): 11.5 % b. Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation (Market): 4.44 % Standard deviation (Stock J): %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!