Expected returns
stocks a and b have the following probability distributions of expected future returns:

col1 probability 0.2 0.2 0.3 0.2 0.1
col2 a -6% 6 15 23 34
col3 b -40% 0 24 27 27

calculate the expected rate of return, rb, for stock b (ra = 12.50%.) do not round intermediate calculations. round your answer to two decimal places.
%
calculate the standard deviation of expected returns, σa, for stock a (σb = 27.80%.) do not round intermediate calculations. round your answer to two decimal places.
%

now calculate the coefficient of variation for stock b. round your answer to two decimal places.
is it possible that most investors might regard stock b as being less risky than stock a?
if stock b is more highly correlated with the market than a, then it might have a higher beta than stock a, and hence be less risky in a portfolio sense.
if stock b is more highly correlated with the market than a, then it might have a lower beta than stock a, and hence be less risky in aportfolio sense.
if stock b is more highly correlated with the market than a, then it might have the same beta as stock a, and hence be just as risky in a portfolio sense.
if stock b is less highly correlated with the market than a, then it might have a lower beta than stock a, and hence be less risky in a portfolio sense.
if stock b is less highly correlated with the market than a, then it might have a higher beta than stock a, and hence be more risky in a portfolio sense.