Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 12% 19% 0.4 10 3 0.3 17 11 Calculate the expected...

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Finance

Problem 6-06
Expected Returns: Discrete Distribution
The market and Stock J have the following probabilitydistributions:
Probability r_M r_J
0.3 12% 19%
0.4 10 3
0.3 17 11
Calculate the expected rate of return for the market. Roundyour answer to two decimal places.
%

Calculate the expected rate of return for Stock J. Round youranswer to two decimal places.
%
Calculate the standard deviation for the market. Do not roundintermediate calculations. Round your answer to two decimalplaces.
%

Calculate the standard deviation for Stock J. Do not roundintermediate calculations. Round your answer to two decimalplaces.
%

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Solution a The expected rate of return for the market 1270The expected rate See Answer

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Problem 6-06Expected Returns: Discrete DistributionThe market and Stock J have the following probabilitydistributions:ProbabilityrMrJ0.312%19%0.41030.31711Calculate the expected rate of return for the market. Roundyour answer to two decimal places.%Calculate the expected rate of return for Stock J. Round youranswer to two decimal places.%Calculate the standard deviation for the market. Do not roundintermediate calculations. Round your answer to two decimalplaces.%Calculate the standard deviation for Stock J. Do not roundintermediate calculations. Round your answer to two decimalplaces.%