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Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions:...

Problem 6-06
Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

Probability rM rJ
0.3 12% 21%
0.4 9 3
0.3 20 11

  1. Calculate the expected rate of return for the market. Round your answer to two decimal places.
    %

    Calculate the expected rate of return for Stock J. Round your answer to two decimal places.
    %
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