Calculate the expected rate of return


The market and stock j have the following probability distributions:

Probability Rm Rj

0.3 15% 20%

0.4 9 5

0.3 18 12

A. Calculate the expected rate of return for the market and stock j.

B. Calculate the coeffecients of variation for the market and stock j.

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Finance Basics: Calculate the expected rate of return
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