Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: % % a. Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place. Expected rate of return (Market): Expected rate of return (Stock J): b. Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation (Market): Standard deviation (Stock J): % Probability 0.3 0.4 0.3 % TH 14% 10 17 D 22% 5 11

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Expected Returns: Discrete Distribution
The market and Stock J have the following probability distributions:
%
%
%
Probability
0.3
0.4
0.3
a. Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place.
Expected rate of return (Market):
Expected rate of return (Stock J):
b. Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places.
Standard deviation (Market):
Standard deviation (Stock J):
%
ги
14%
10
17
rj
22%
5
11
Transcribed Image Text:eBook Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: % % % Probability 0.3 0.4 0.3 a. Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place. Expected rate of return (Market): Expected rate of return (Stock J): b. Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation (Market): Standard deviation (Stock J): % ги 14% 10 17 rj 22% 5 11
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