Question: Problem 2-6 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability r M r J 0.3 14% 22% 0.4

Problem 2-6 Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability	r_M	r_J
0.3	14%	22%
0.4	10	7
0.3	19	12

Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. %

Calculate the standard deviation for the market. Round your answer to two decimal places. % Calculate the standard deviation for Stock J. Round your answer to two decimal places. %

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