Question: please show work! thanks 5. Expected Returns: Discrete Distribution; The market and stock have the following probability distribution: Probability 0.2 0.5 0.3 IM 15% 9

please show work! thanks please show work! thanks 5. Expected Returns: Discrete Distribution; The market and

5. Expected Returns: Discrete Distribution; The market and stock have the following probability distribution: Probability 0.2 0.5 0.3 IM 15% 9 18 20% 5 12 a. Calculate the expected rates of return from the market and stock b. Calculate the standard deviation for the market and stock J C. Calculate the coefficient of variation for the market and stock) 6. Required rate of return: As an equity analyst you are concerned with what will happen to the required return to Universal Toddler Industries's stock as market conditions change. Supposer RF=8%, [ M=12%, and b UTI=1.4. a. Under current conditions, what is r UTI, the required rate of return on UTI stock? b. Now supposer RF (1) increases to 9% or (2) decreases to 7%. The slope of the SML remains constant. How would this affect r M and r UTI? c. Now assumer RF remains at 8% but r M (1) increases to 15% or (2) falls to 10%. The slope of the SML does not remain constant. How would these changes affect r UTI

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