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The market and Stock J have the following probability distributions: Probability rM rJ 0.3 16% 22%...

The market and Stock J have the following probability distributions:

Probability

rM

rJ

0.3

16%

22%

0.4

8

7

0.3

20

12

a. Calculate the expected rate of return for the market. Round your answer to two decimal places.

a1. Calculate the expected rate of return for Stock J. Round your answer to two decimal place

b. Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.

b2. Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places

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Expert Solution

jeff jeffy answered 1 year ago
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