Your rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year are: KAYLEIGH COSMETICS CO. Possible Rate of Return Probability − XXXXXXXXXX15 − XXXXXXXXXX10 −...

Your rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year are:

KAYLEIGH COSMETICS CO.

Possible Rate of Return Probability

−0.60 ............0.15

−0.30 ............0.10

−0.10 ............0.05

0.20 ............0.40

0.40 ............0.20

0.80 ............0.10

a. Compute the expected return [E(Ri)] on this stock, the variance (σ2) of this return, and its standard deviation (σ).