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5 . 7 You are trying to develop a strategy for investing in two differ - ent stocks. The anticipated annual return for a $

5.7 You are trying to develop a strategy for investing in two differ-ent stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the fol-lowing probability distribution: Returns Probability Economic Condition Stock X Recession 0.10.30.40.2 Slow growth Moderate growth Fast growth -5020 100150 Stock Y -100 50 130200 Calculate the a. expected return for stock X and for stock Y. b. standard deviation for stock X and for stock Y. c. Would you invest in stock X or stock Y? Explain

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