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Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: ...

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Finance

Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability rM rJ
0.3 16 % 18 %
0.4 10 4
0.3 18 10

Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place.

Expected rate of return (Market): %

Expected rate of return (Stock J): %

Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places.

Standard deviation (Market): %

Standard deviation (Stock J): %

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