Problem:
The market and Stock S have the following probability distributions:
Probability Rm Rs
0.3 15% 20%
0.4 9 5
0.3 18 12
Required:
Question 1: Calculate the expected rates of return for the market and Stock S
Question 2: Calculate the standard deviations for the market and Stock S
Question 3: Calculate the coefficients of variation for the market and Stock S
Note: Explain in detail.