Question: pls stepwise and in excel only pls, explain concept also Expected returns Stocks A and B have the following probability distributions of expected future returns:

pls stepwise and in excel only pls, explain concept also

pls stepwise and in excel only pls, explain concept also Expected returns

Expected returns Stocks A and B have the following probability distributions of expected future returns: a. Calculate the expected rate of return, rB, for Stock B(rA=12.80%.) Do not round intermediate calculations. Round your answer to two decimal places. \% b. Calculate the standard deviation of expected returns, A, for Stock A(B=22.86%.) Do not round intermediate calculations. Round your answer to two decimal \% 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 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. II. 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. III. 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. IV. 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. V. 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

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