The expected returns for Stocks A and B have the following probability distributions: State of the...

Transcribed Image Text:

The expected returns for Stocks A and B have the following probability distributions: State of the Economy Probability Stock A 0.15 Below average Average 0.60 Above average 0.25 14.10 percent 12.25 percent Y X Calculate the expected rate of return for Stock A. 14.35 percent 10.50 percent 19.00 percent -12% 13 18 c. 1.2686 d. 1.3251 c. 0.9282 Stock B -15% 16 28 Calculate the coefficient of variation for Stock B, assuming B's expected return is 14.35%. (Keep 4 decimals throughout problem.) a. 9.6825 b. 0.9421 The expected returns for Stocks A and B have the following probability distributions: State of the Economy Probability Stock A 0.15 Below average Average 0.60 Above average 0.25 14.10 percent 12.25 percent Y X Calculate the expected rate of return for Stock A. 14.35 percent 10.50 percent 19.00 percent -12% 13 18 c. 1.2686 d. 1.3251 c. 0.9282 Stock B -15% 16 28 Calculate the coefficient of variation for Stock B, assuming B's expected return is 14.35%. (Keep 4 decimals throughout problem.) a. 9.6825 b. 0.9421

Answer rating: 100% (QA)

Your answers are correct Here is a breakdown of your answers Expected rate of return for Stock A1435 ... View the full answer