Stock A Probability (%) 0.1 -8% 1.6 9.6 16 30.4 0.2 0.4 0.2 0.1 Return Stock B (%) -28% 0 16 Suppose you know that the expected rate of return for stock A is 9.6% and would like to calculate the expected return for stock B. 20 36 The expected rate of return for stock B is approximately True Suppose you know that the standard deviation of expected returns for stock B is 16.2776% and would like to calculate the standard deviation of expected returns for stock A. Hint: Recall that the expected rate of return for stock A is 9.6%. False %. The variance of the expected returns for stock A is approximately approximately %. Using your calculations in the previous parts of the problem, the coefficient of variation of stock B is approximately while the standard deviation of expected returns for stock A is True or False: Investors will always view the stock with a lower coefficient of variation as a "safer" choice when compared to a stock with a higher coefficient of variation.

Suppose you know that the expected rate of return for stock A is 9.6% and would like to calculate the expected return for stock B. The expected rate of return for stock B is approximately %. Suppose you know that the standard deviation of expected returns for stock B is 16.2776% and would like to calculate the standard deviation of expected returns for stock A. Hint: Recall that the expected rate of return for stock A is 9.6%. The variance of the expected returns for stock A is approximately while the standard deviation of expected returns for stock A is approximately %. Using your calculations in the previous parts of the problem, the coefficient of variation of stock B is approximately True or False: Investors will always view the stock with a lower coefficient of variation as a "safer" choice when compared to a stock with a higher coefficient of variation. True False