Given below are likely returns in case of shares of Sun Ltd. and Moon Ltd. In the various economic conditions. Both shares are presently quoted at Rs. 100 per share.

Economic Condition Probability Returns of Sun Ltd.(%) Returns of Moon Ltd.(%)

High Growth 0.3 100 150

Low Growth 0.4 110 130

Stagnation 0.2 120 90

Recession 0.1 140 60

Compute Expected Return and Standard Deviation for both stocks and provide your suggestion for suitable investment. (20 Marks)

( The answer should be a min of 800 Words with a theory explanation )