The market and stock j have the following probability

Question

The market and stock J have the following probability distributions:

Probablity        rM            rJ

0.3                   15%         20%

0.4                   9               5

0.3                   18             12

A. Calculate the expected rates of return for the market and stock J. show all work and formulas.

B. Calculate the standard deviations for the market and stock J. show all work and formulas.