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Problem about expected return

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Reference no: EM133113621

Problem about Expected Return.  

Reference book: 

Corporate Finance: A Focused Approach
by Ehrhardt and Brigham
Second Edition

(5-5) Expected performance. Market and Stock J have the following probability distribution:

Probability

rM

rJ

0.3

15%

20%

0.4

9%

5%

0.3

18%

12%

a. Calculate the expected rate of return on the market and Stock J.

b. Find the standard deviation of the market and the stock J.

c. Calculate the coefficient of variation of the market and the stock J.

Reference no: EM133113621

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