Question: Problem 6-6 Expected Return: Discrete Distribution The market and Stock I have the following probability distributions: Probability Probability CM IM 0.3 16% 18% 0.4 8

Problem 6-6 Expected Return: Discrete Distribution The market and Stock I

Problem 6-6 Expected Return: Discrete Distribution The market and Stock I have the following probability distributions: Probability Probability CM IM 0.3 16% 18% 0.4 8 7 0.3 17 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. b. 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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