Question: The market and Stock A have the following probability distributions:
Probability km (Market) kA (Stock A)
0.3 15% 20%
0.4 9 5
0.3 18 12
a. Calculate the expected rates of return for the market and Stock A.
b. Calculate the standard deviations for the market and Stock A.
c. Calculate the coefficients of variation for the market and Stock A.