Question: Use the following information for the next two problems: The expected returns for Stocks A and B have the following probability distributions: State of the

Use the following information for the next two problems: The expected returns for Stocks A and B have the following probability distributions: State of the Economy Probability Stock A Stock B Average 0.35 14% 16% Below average 0.50 -12 -5 Above average 0.15 32 25 Calculate the expected rate of return for Stock Al a. 3.70 percent b. 6.85 percent c. 4.79 percent d. 6.10 percent e. None of the above 2 3 Calculate the coefficient of variation for Stock B. (Keep 4 decimals throughout problem.) a. 2.44 b. 4.53 c. 4.67 d. 56 e. 1.78

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