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arizona state homework 5. Assume there are three potential outcomes in the market, high, normal, and low. The probabilities of these three outcomes are 0.30,

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arizona state homework
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5. Assume there are three potential outcomes in the market, high, normal, and low. The probabilities of these three outcomes are 0.30, 0.40, and 0.30, respectively. In the three outcomes stock X has returns of 48%, 22%, and -24%, respectively; stock Y has returns of 24%, 12%, and -5%, respectively. 3 pts a. Compute the expected return for stock Y b. Compute the standard deviation for stock X. 5. Assume there are three potential outcomes in the market, high, normal, and low. The probabilities of these three outcomes are 0.30, 0.40, and 0.30, respectively. In the three outcomes stock X has returns of 48%, 22%, and -24%, respectively; stock Y has returns of 24%, 12%, and -5%, respectively. 3 pts a. Compute the expected return for stock Y b. Compute the standard deviation for stock X

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