Question: PLEASE ANSWER (B) EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.2 0.3 0.3 0.1 (13%)

PLEASE ANSWER (B)

PLEASE ANSWER (B) EXPECTED RETURNS Stocks A and B have the following

EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.2 0.3 0.3 0.1 (13%) (28%) 14 19 30 23 25 42 a. Calculate the expected rate of return, r, for stock B (rA = 12.20%.) Do not round intermediate calculations. Round your answer to two decimal places 15.8 for Stock A (Og = 18.74%.) Do not round intermediate calculations. Round your answer to two decimal places b. Calculate the standard deviation of expected returns, 15 C. Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places. 1.19

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