Probability 0.1 0.2 0.5 0.1 0.1 A (7%) 2 Adet B (32%) 0 12 24 33 a Calculate the expected rate of return, Fa, for Stock B (FA- 11.40%) Do not round intermediate calculations. Round your answer to two decimal places. b. Calculate the standard deviation of expected returns, ela for Stock A (08-19.78%.) Do not round intermediate calculations. Round your answer to two decimal places 22 30 43 Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places. la possible that most investors might regard Stock B as being less risky than Stock A 1. If Stock is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. 11. If Stock 8 is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio sense 1. If Steck more highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be less risky in a portfolio sense. TV. If Stock is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less msky in a portfobo sense. V. If Stock B more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolio sense Assume the nuk free rate is 15% What are the Sharpe ratios for Stocks A and B? Do not round intermediate calculations. Round your answers to four decimal places. Stock A Stock B Are these calodations consistent with the information obtamed from the coefficient of variation calculations in Part b Lo stand one risk sense A is less noky than B If Stock is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in portho sense Are these calculations consistent with the information obtained from the coefficient of variation calculations in Part 7 1. In a stand-alone risk sense A is less risky than 8. If Stack B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfulu sense. 11. In a stand-alone nsk sense A is less risky than B. If Stock n is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. III. In a stand alone rsk sense A is less rsky than . If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more roky in a portfolio sense. IV. ts a stand-alone risk sense A is more risky than 8. If Stock 8 is less highly correlated with the market than A, then at might have a lower beta than Stock A, and hence be less risky in a V. in a stand alone risk sense A is more maky than B. I stock is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more my in portfole veran Smut