Stock B Rate of Return    Probability              Rate of Return         Probability 14                         0.15                                20                      0.20 16                         0.20                               18                       0.18 17                         0.30                               16                       0.32 19                         0.15                               14                       0.14 20                         0.20                               10                       0.16 a. Calculate the expected return for both stock A and stock B b. Calculate the standard deviation for both stock A and stock B c.  Calculate the coefficient of variation for both stock A and stock B.

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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Stock A                                                 Stock B
Rate of Return    Probability              Rate of Return         Probability
14                         0.15                                20                      0.20
16                         0.20                               18                       0.18
17                         0.30                               16                       0.32
19                         0.15                               14                       0.14
20                         0.20                               10                       0.16

a. Calculate the expected return for both stock A and stock B

b. Calculate the standard deviation for both stock A and stock B

c.  Calculate the coefficient of variation for both stock A and stock B.

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