Stocks A and B have the following probability distributions of
expected future returns:
Probability
A
B
0.1
(13
%)
(34
%)
0.1
5
0
0.6
16
20
0.1
20
26
0.1
40
36
Calculate the expected rate of return, , for Stock B
( = 14.80%.) Do not round intermediate calculations. Round your
answer to two decimal places.
%
Calculate the standard deviation of expected returns,
σA, for Stock A (σB = 18.27%.) Do not round
intermediate calculations. Round your...