The market and Stock J have the following probability distributions: Probability rM rJ 0.3 12% 20% 0.4 8 7 0.3 17 13 Calculate the expected rate of return for...

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Finance


The market and Stock J have the following probabilitydistributions:

ProbabilityrMrJ
0.312%20%
0.487
0.31713


Calculate the expected rate of return for the market. Round youranswer 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.

Answer & Explanation Solved by verified expert
4.2 Ratings (557 Votes)
Solution The expected rate of return for the market 1190The expected rate    See Answer
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The market and Stock J have the following probabilitydistributions:ProbabilityrMrJ0.312%20%0.4870.31713Calculate the expected rate of return for the market. Round youranswer 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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