Stocks A ond B have the following probability distributions of expected future retums: a. Caiculate the expected rate of retum, for Stock B =12.20+100 not round intermedite calcutations. Round your answer to two decimal places. Now colculote the coeffient of variation for Stock B. Do not round intermediate calculations. Rewnd your answee to two decimat plachs. Is it possible that most investors might regard 5 tock B as being less risky than Steck A ? I. 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 senge. 14. If Stock B is mare aighly correlated with the market than A, then it might have a lower beta than stock. A, and hence be less risky in a portfolie sense. II. If 5tock a is more highly correlated with the market than A, then it might have the same beto as stock A, and bence be fust as risky in a partfota sarise. T. If Soock B is loss highly correlated with the market than A, then it might have a lower bera than stock A, and hence be less risky in a portfolio sense V. If Stock B is less highly correteted with the market than A, thien it might have a hlgher beta than Stock A, and hence be mere risky in a portalia sempe. c. Assume the Hisk-free rate is 3.5%. What are the Sharpe ratios for Stocks A and B? Do not round intermediate cilculations. Round your answers to four decimal placei. 5stockA Stock B Are these calculations consistent with the information obtained from the coefficient of variation caliculations in Part b? 1. In a stand-alone 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 higher beta than Stock At and hence be more risky in a pontolio sense. II. In a stand-alone risk sense A is morn risky than B. 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 portfolio 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 mighthave a higher beta than sitock A. in hence be more risky in a portfolio sense. N. 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 portolio sense. V. In a stand-alone 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 lovear beta than Stock A, and hence be less risky in a portfolio sense