Question: Problem 6-6 Expected Return: Discrete Distribution The market and Stock J have the following probability distributions: Probability r M r J 0.3 13% 22% 0.4

Problem 6-6 Expected Return: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability

rM

rJ

0.3

13%

22%

0.4

8

3

0.3

17

10

  1. 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. %
  2. 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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