Question: Problem 2-6 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability 0.3 0.4 0.3 rM rj 16% 9 19

Problem 2-6 Expected Returns: Discrete Distribution The market and Stock J

Problem 2-6 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability 0.3 0.4 0.3 rM rj 16% 9 19 20% 12 a. 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. 0 b. Calculate the standard deviation for the market. Round your answer to two decimal places. 0 Calculate the standard deviation for Stock J. Round your answer to two decimal places

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