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

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 Below average 0.15 -12 % -15 % Average 0.60 13 16 Above average 0.25 18 28 vi a. Calculate the expected rate of return for Stock A. 14.35 percent b. 10.50 percent c. 19.00 percent d. 14.10 percent e. 12.25 percent vii 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 c. 1.2686 d. 1.3251 e. 0.9282

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