Name: FIN 31 Spring 2019 Homework 2 Due by Feb 26 during class time Following table shows probability distributions stock returns of companies at different economic conditions Economy Prob. Boeing Walmart Facebook Bust 10.15 20% 15%-13% Below 10.25 1-4% 15% 6% Av Above 0.2 16% 2296 110% 111% 120% Boom 0.1 35% 112% 120% a) Calculate expected return, variance, and standard deviation of each company. You must have to show how you calculate step by step and what formula you use. You might use excel to double check but in this homework, it is mandatory te show your caleulation in detail. b) If your goal is to select the stock with the lowest risk, then which stock should you choose and why? Name: FIN 31 Spring 2019 Homework 2 Due by Feb 26 during class time Following table shows probability distributions stock returns of companies at different economic conditions Economy Prob. Boeing Walmart Facebook Bust 10.15 20% 15%-13% Below 10.25 1-4% 15% 6% Av Above 0.2 16% 2296 110% 111% 120% Boom 0.1 35% 112% 120% a) Calculate expected return, variance, and standard deviation of each company. You must have to show how you calculate step by step and what formula you use. You might use excel to double check but in this homework, it is mandatory te show your caleulation in detail. b) If your goal is to select the stock with the lowest risk, then which stock should you choose and why