Please solve step by step for clarity, thank you! 1. The market and Stock A have the following probability distributions:Return onReturn onProbabilitymarketStock A0.218%16%0.312%14%0.510%11%a.Calculate the expected rates of return for the market and Stock A.b. Calculate the coefficient of variation for the market and Stock A(Standard deviation for market is 3.0265% and standard deviation for Stock A is 2.0224%).

Coefficient of Variation = Standard Deviation / Average Return

1. The market and Stock A have the following probability distributions: Return on Return on Probability market Stock A 0.2 18% 16% 0.3 12% 14% 0.5 10% 11% Calculate the expected rates of return for the market and Stock A. а.

1. The market and Stock A have the following probability distributions: Return on Return on Probability market Stock A 0.2 18% 16% 0.3 12% 14% 0.5 10% 11% Calculate the expected rates of return for the market and Stock A. а.

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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1. The market and Stock A have the following probability distributions:
Return on
Return on
Probability
market
Stock A
0.2
18%
16%
0.3
12%
14%
0.5
10%
11%
a.
Calculate the expected rates of return for the market and Stock A.
b. Calculate the coefficient of variation for the market and Stock A
(Standard deviation for market is 3.0265% and standard deviation for Stock A is 2.0224%).

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