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Stocks x and y have the following probability distributions

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Expected returns

Stocks X and Y have the following probability distributions of expected future returns:

Probability X Y
0.1 -15% -22%
0.2 3 0
0.3 15 18
0.2 21 26
0.2 31 36

1.Calculate the expected rate of return, rY, for Stock Y (rX = 14.00%.)

Reference no: EM13486183

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