Stocks A and B have the fallowing probability distributions of espected future returns: A Probability 0.1 (10N) (a5) 0.2 2 0.4 12 20 0.2 20 25 0.1 38 45 Cakulate the cxpected rate of return for each...

Q1

Extracted text: Stocks A and B have the fallowing probability distributions of espected future returns: A Probability 0.1 (10N) (a5) 0.2 2 0.4 12 20 0.2 20 25 0.1 38 45 Cakulate the cxpected rate of return for each stck. (2 decimal) places Stock A Expected Return Stock B Expected Return Cakulate the standard deviation of expected returm, for each stock (2 decimal places) Stock A Standard Deviation Stock 8 Standard Deviation Now caltulate the coeflicient of variation for each stock (2 decimal places) Stock A Coefficient of Variation Stock B Couficient of Variation Assume the risk-free rate is 25. What are the Sharpe ratias for Stocks A and B? (4 decimal places) Stock A Sharpe Ratio Stock B Sharpe Ratio