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Stocks \\( A \\) and \\( B \\) have the folsowing probability distributions of expected future returns: a. Calculate the expected rate of retum, \\( \\hat{r}_{\\mathrm{B}} \\), for Stock \mathrmBleft(vecrmathrmA=12.90.) Do not round intermediate calculations. Round your answer to two decimal places. \ b. Calculate the standard deviation of expected returns, \\( \\sigma_{\\mathrm{A}} \\), for \\( S \\) tock \Aleft(sigma0=17.43, \\( D 0 \\) not round intermediate calculations. Round your answer to two decimal places. Now calculate the coefndent of variation for StOE. B. Do not round intermediate calculations. Round your answer to two decimal places, Is it possible that most investors might regard Stock B as being less risky than Stock A? 1. Ir Stock \\( B \\) is less highly correlated with the market than \\( A \\), then it might have a higher beta than Stock \\( A \\), and hence be more risky in a portfolio sense. 11. If Stock \\( B \\) is more highly correlated with the market than A, then it might have a higher beta than stock A, and hence be less risky in a portfolio sense. III. If Stock B is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. IV. If Stock \\( B \\) is more highly correlated with the market then \\( A \\), then it might have the same beta as Stock \\( A \\), and hence be just as risky in a portiolio III. If Stock B is more highly correlated with the market than \\( A \\), then it might have a lower beta than Stock \\( A \\), and hence be less risky in a portfolio sense. IV. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense. V. If Stock \\( B \\) is less highly correlated with the market than \\( A \\), then it might have a lower beta than stock \\( A \\), and hence be iess risky in a portfolia seinse C. Assume the fisk-free rate is \1.5. What are the Sharpe ratios for Stocks A and 6 ? Do not round intermediate catculations. Round your answers to four decimel ploces. stock A: Stock B: Are these calculations consistent with the informotion obtained from the coeficient of variation calculations in Part b? 1. In a stand-alone risk sense A is less ricky than B. If Stock \\( B \\) is less highly correlated with the market than \\( A \\), then it might have a higher beta than Stock \\( A \\), and hence be more risky in alportfoldo sense. II. In a stand-alone risk sense A is more risky than B. If Steck 6 is less highly correlated with the market than A, then it might have a lower beta than. Stock \\( A \\), end hence be less risky in a portollo sense. 111. In a stand-alone risk sense A is more risky than B. If Stock B is less highly correlated with the market than \\( A \\), then it might have a higher beta than Stock \\( A \\), end hence be more risky in a portfolio sense. IV. In a stand-alone risk sense A is less risky than B. If Stock B is more highly correlated with the market than A, then it might have the same beta as Stock \\( A \\), and hence be just as risky in a portfotio sense. \\( \\checkmark \\). In a stand-aicne risk sense A is less risky than B. If stock B is less highly correlated with the market than \\( A \\), then it might have a iower beta than Stock \\( A \\), and hence be less risky in a portfolio sense

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