Calculate the expected rates of return for market and stock


Question: The market and Stock A have the following probability distributions:

Probability    km (Market)    kA (Stock A)
0.3    15%    20%
0.4     9         5
0.3    18       12

a. Calculate the expected rates of return for the market and Stock A.

b. Calculate the standard deviations for the market and Stock A.

c. Calculate the coefficients of variation for the market and Stock A.

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Finance Basics: Calculate the expected rates of return for market and stock
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