Consider the following probability distribution for stocks A and B: Table 4 Probability Distribution for Stocks A and B State Probability Return on Stock A Return on Stock B 1 0.1 10% 8% 2 0.2 13% 7% 3 0.2 12% 6% 4 0.3 14% 9% 5 0.2 15% 8% The variances of Stocks A and B are _____ and _____, respectively. Group of answer choices .015%; .019% .022%; .012% .032%; .02% .015%; .011% .014%; .021%
Consider the following probability distribution for stocks A and B: Table 4 Probability Distribution for Stocks A and B State Probability Return on Stock A Return on Stock B 1 0.1 10% 8% 2 0.2 13% 7% 3 0.2 12% 6% 4 0.3 14% 9% 5 0.2 15% 8% The variances of Stocks A and B are _____ and _____, respectively. Group of answer choices .015%; .019% .022%; .012% .032%; .02% .015%; .011% .014%; .021%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 6P: The market and Stock J have the following probability distributions: a. Calculate the expected rates...
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Consider the following probability distribution for stocks A and B: | |||
Table 4 Probability Distribution for Stocks A and B | |||
State | Probability | Return on Stock A | Return on Stock B |
1 | 0.1 | 10% | 8% |
2 | 0.2 | 13% | 7% |
3 | 0.2 | 12% | 6% |
4 | 0.3 | 14% | 9% |
5 | 0.2 | 15% | 8% |
The variances of Stocks A and B are _____ and _____, respectively. | |||
Group of answer choices | |||
.015%; .019% | |||
.022%; .012% | |||
.032%; .02% | |||
.015%; .011% | |||
.014%; .021% |
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