Question: Please show all work! as I'm trying to understand this as well - If possible use Financial Calculator instead of excel - excel is still

 Please show all work! as I'm trying to understand this as

Please show all work! as I'm trying to understand this as well - If possible use Financial Calculator instead of excel - excel is still accepted please just explain the formulas used. Thank you

EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: B (24%) Probability 0.1 0.2 0.3 0.2 0.2 A (13%) 3 16 0 20 29 19 31 46 a. Calculate the expected rate of return, re, for Stock B (rA = 14.10%.) Do not round intermediate calculations. Round your answer to two decimal places. % b. Calculate the standard deviation of expected returns, OA, for Stock A (0g = 20.57%.) Do not round intermediate calculations. Round your answer 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? I. 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

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