24.Consider the probability distribution of rate of return on RayFran stock: Rate of Return Probability 40% 0.25 15% 0.55 -8% 0.20 Compute the expected rate of return on RayFran stock. (a)9.75% (b)15.60% (c)16.65% (d19.85% Answer:(c) 25.Refer to question 24.Now compute the standard deviation of RayFran stock. (a)12.95% (b)13.10% (c)16.10% (d25.90% Answer:(c) 26.Consider a stock with an expected return of 15%and a standard deviation of 8%that is normally distributed.What is the 0.95 confidence interval for this stock's rate of return? (a(7%,23%) (b)(-9%,39%) (c)(-1%,39%) (d)(-1%,31%) Answer:(d) 10-710-7 24. Consider the probability distribution of rate of return on RayFran stock: Rate of Return Probability 40% 0.25 15% 0.55 –8% 0.20 Compute the expected rate of return on RayFran stock. (a) 9.75% (b) 15.60% (c) 16.65% (d) 19.85% Answer: (c) 25. Refer to question 24. Now compute the standard deviation of RayFran stock. (a) 12.95% (b) 13.10% (c) 16.10% (d) 25.90% Answer: (c) 26. Consider a stock with an expected return of 15% and a standard deviation of 8% that is normally distributed. What is the 0.95 confidence interval for this stock's rate of return? (a) (7%, 23%) (b) (–9%, 39%) (c) (–1%, 39%) (d) (–1%, 31%) Answer: (d)