The market and Stock ) have the following probablity distributions: Probability TH 0.3 14% 19% 0.4 10 0.3 17 11 a. Calculate the expected rate of returm tor the market. Round your answer to two decimal places. Calculate the expected rate of retum for Stock ). Round your answer to two decimal places. b. Calculate the standard deviation for the market. Do ot round intermediate calculations. Round your answer to two deimal places Calculate the standard deviation for Stock 1. Do not round intermediate calculations Round your answer to two decimal places.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 6P: The market and Stock J have the following probability distributions: a. Calculate the expected rates...
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Expected Returns: Discrete Distribution
The market and Stock ) have the following probability distributions:
Probability
0.3
14%
19%
0.4
10
0.3
17
11
a. Calculate the expected rate of returm for the market. Round your answer to two decimal places.
Calculate the expected rate of retum for Stock ), Round your answer to two decimal places.
b. Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.
Calculate the standard deviation for Stock J. Do not round intermediate calculations Round your answer to two decimal places.
Transcribed Image Text:Expected Returns: Discrete Distribution The market and Stock ) have the following probability distributions: Probability 0.3 14% 19% 0.4 10 0.3 17 11 a. Calculate the expected rate of returm for the market. Round your answer to two decimal places. Calculate the expected rate of retum for Stock ), Round your answer to two decimal places. b. Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places. Calculate the standard deviation for Stock J. Do not round intermediate calculations Round your answer to two decimal places.
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