Calculate the expected rate of return

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Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 -14% -22% 0.2 2 0 0.4 13 22 0.2 23 28 0.1 31 45 Calculate the expected rate of return, rY, for Stock Y (rX = 11.90%.) Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σX, for Stock X (σY = 17.96%.) Round your answer to two decimal places. % Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.

Reference no: EM132000855

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