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

Probability X Y

0.1 - 10% - 35%

0.2 2 0

0.4 12 20

0.2 20 25

0.1 38 45

a) Calculate the expected rate of return, y, for Stock Y (x = 12%).

b) Calculate the standard deviation of expected returns, x, for Stock X (y = 20.35%).

c) Calculate the coefficient of variation for Stock Y.

d) Is it possible that most investors will regard Stock Y as being less risky than Stock X? Explain.