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 Below average - 0,20 - 8% - 6% Average - 0,60 - 13 - 15 Above average - 0,20 - 28 - 26

7. Calculate the coefficient of variation for Stock B, assuming B's expected return is 13,00% (Keep 4 decimals throughout problem.)

a. .8009

b. 1.2356

c. .9657

d. 1.1492

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