Please answer A through D

Ch 08: End-of-Chapter Problems - Risk and Rates of Return Keep the Highest: 14 5. Problem 8.06 Click here to read the eBook: Stand-Alone Risk EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability 0.2 (5%) (21%) 0.2 10 0.3 0.2 a. Calculate the expected rate of return, re,for Stock B (A - 9.60%.) Do not round intermediate calculations. Round your answer to two decimal places b. Calculate the standard deviation of expected returns, on for Stock A (08 - 20.18%.) Do not round intermediate calculations. Round your answe 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? otno-or chapter Problems and Rates of Return b. Calculate the standard deviation of expected returns, OAfor Stock A ( to two decimal places. 20.18%.) Do not round Intermediate calculations. Round your answer A-21 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? L. IF Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense. II. IF Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. III. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense. IV. If Stock B is more highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be less risky in a portfolio sense. V. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. -Select- Orade i New Save Continue Continue without saving