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QUESTION

1) Calculate the standard deviation of expected returns, A , for Stock A ( B = 20.) Do not round intermediate calculations. Round your answer to two...

1) Calculate the standard deviation of expected returns, σA, for Stock A (σB = 20.48%.) Do not round intermediate calculations. Round your answer to two decimal places.Reference chart below.

2) Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places. Reference chart below.

Chart: EXPECTED RETURNS

Stocks A and B have the following probability distributions of expected future returns:

Probability                               A                             B

0.1                                  (14%)                       (29%)

     0.2                                     2                              0

     0.3                                    15                            21

     0.3                                    21                            28

     0.1                                    29                            50

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