Problem 8-6. Expected returns

Stocks X and Y have the following probability distributions of expected future returns:

PROBABILITY	X	Y
0.1	- 13%	- 39%
0.2	2	0
0.3	13	20
0.2	21	30
0.2	31	39

a. Calculate the expected rate of return, , for Stock Y.( = 13.40%.) Round your answer to two decimal places.

b. Calculate the standard deviation of expected returns, , for Stock X. ( = 22.44%.) Round your answer to two decimal places.

c. Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.