Stocks A and B have the following probability distributions of expected future returns: % % Now calculate the coefficien

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Stocks A and B have the following probability distributions ofexpected future returns:
%
%
Now calculate the coefficient of variation for Stock B. Do notround intermediate calculations. Round your answer to two decimalplaces.
Is it possible that most investors might regard Stock B as beingless risky than Stock A?
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Assume the risk-free rate is 4.5%. What are the Sharpe ratiosfor Stocks A and B? Do not round intermediate calculations. Roundyour answers to four decimal places.
Stock A:
Stock B:
Are these calculations consistent with the information obtainedfrom the coefficient of variation calculations in Part b?
Stocks A and B have the following probability distributions ofexpected future returns: Probability A B 0.1 (13 %) (34 %) 0.2 4 00.4 12 18 0.2 18 30 0.1 37 50 Calculate the expected rate ofreturn, , for Stock B ( = 11.60%.) Do not round intermediatecalculations. Round your answer to two decimal places. 14.80 %Calculate the standard deviation of expected returns, σA, for StockA (σB = 21.36%.) Do not round intermediate calculations. Round youranswer to two decimal places. 17.42 % Now calculate the coefficientof variation for Stock B. Do not round intermediate calculations.Round your answer to two decimal places. Is it possible that mostinvestors might regard Stock B as being less risky than Stock A? IfStock B is less highly correlated with the market than A, then itmight have a higher beta than Stock A, and hence be more risky in aportfolio sense. If Stock B is more highly correlated with themarket than A, then it might have a higher beta than Stock A, andhence be less risky in a portfolio sense. If Stock B is more highlycorrelated with the market than A, then it might have a lower betathan Stock A, and hence be less risky in a portfolio sense. IfStock B is more highly correlated with the market than A, then itmight have the same beta as Stock A, and hence be just as risky ina portfolio sense. If Stock B is less highly correlated with themarket than A, then it might have a lower beta than Stock A, andhence be less risky in a portfolio sense. III Assume the risk-freerate is 4.5%. What are the Sharpe ratios for Stocks A and B? Do notround intermediate calculations. Round your answers to four decimalplaces. Stock A: Stock B: Are these calculations consistent withthe information obtained from the coefficient of variationcalculations in Part b? In a stand-alone risk sense A is more riskythan B. If Stock B is less highly correlated with the market thanA, then it might have a higher beta than Stock A, and hence be morerisky in a portfolio sense. In a stand-alone risk sense A is lessrisky than B. If Stock B is more highly correlated with the marketthan A, then it might have the same beta as Stock A, and hence bejust as risky in a portfolio sense. In a stand-alone risk sense Ais less risky than B. If Stock B is less highly correlated with themarket than A, then it might have a lower beta than Stock A, andhence be less risky in a portfolio sense. In a stand-alone risksense A is less risky than B. If Stock B is less highly correlatedwith the market than A, then it might have a higher beta than StockA, and hence be more risky in a portfolio sense. In a stand-alonerisk sense A is more risky than B. If Stock B is less highlycorrelated with the market than A, then it might have a lower betathan Stock A, and hence be less risky in a portfolio sense.