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Attempts Average / 6 17. Problem 8-1 eBook You have estimated the following probability distributions of expected future returns for Stocks X and Y: Stock
Attempts Average / 6 17. Problem 8-1 eBook You have estimated the following probability distributions of expected future returns for Stocks X and Y: Stock X Stock Y Probability Return Probability Return 0.1 0.2 0.3 18 0.1 20 0.1 17 0.2 45 0.1 18 -10% 4% 0.2 10 6 0.4 0.3 12 a. What is the expected rate of return for Stock X? Stock Y? Round your answers to one decimal place. Stock X: % Stock Y: % b. What is the standard deviation of expected returns for Stock X? For Stock Y? Round your answers to two decimal places. Stock X: % Stock Y: % C. Which stock would you consider to be riskier? -Select- is riskier because it has a -Select- standard deviation of returns
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