# Expected Returns Problem

Not what you're looking for?

The market and Stock J have the following probability distributions:

Probability rM r3

0.3 15% 19%

0.4 8 4

0.3 20 11

a) calculate the expected rat of return for the market. round to two decimal places.____________%

calculate the expected rate of return for Stock J. round to two decimal places.___________%

b) calculate the standard deviation for the market. round to two decimal places.____________%

calculate the standard deviation for the market. round to two decimal places.____________%

c) calculate the coefficient of variation for the market. round to two decimal places.______________%

calculate the coefficient of variation for Stock J. round to two decimal places.___________%

_____________________

I'm not sure if I worked these correct, my answers are:

a) 43%

34%

b) 6.03%

7.51%

c) 42.05

66.23

##### Purchase this Solution

##### Solution Summary

The solution answers Expected Returns Problem.

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

##### Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

##### Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

##### Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

##### Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.