The market and Stock A have the following probability distributions: Probability Return on Market Return on Stock A 0.15 15% 18% 0.3 12% 15% 0.55 10% 11% a. Calculate...

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Finance

The market and Stock A have the following probabilitydistributions:
Probability Return on Market Return on Stock A
0.15 15% 18%
0.3 12% 15%
0.55 10% 11%
a. Calculate the expected rates of return for the market andStock A.
b. Calculate the standard deviations for the market and StockA.
c. Calculate the coefficient of variation for the market andStock A.

Answer & Explanation Solved by verified expert

4.4 Ratings (941 Votes)

Solutiona The expected rates of return for the market and StockA are as follows Market 1135 Stock A 1325 b The See Answer

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Transcribed Image Text

The market and Stock A have the following probabilitydistributions:ProbabilityReturn on MarketReturn on Stock A0.1515%18%0.312%15%0.5510%11%a. Calculate the expected rates of return for the market andStock A.b. Calculate the standard deviations for the market and StockA.c. Calculate the coefficient of variation for the market andStock A.

Probability	Return on Market	Return on Stock A
0.15	15%	18%
0.3	12%	15%
0.55	10%	11%