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The following probability distributions of return for Stock Y have been estimated: Probability Stock Y 0.3 3% 0.4 4% 0.3 5% Calculate the expected rate

The following probability distributions of return for Stock Y have been estimated:

Probability Stock Y
0.3 3%
0.4 4%
0.3 5%

  1. Calculate the expected rate of return (), standard deviation (), and the coefficient of variation (CV) for Stock Y.

Based on the calculation of Question I and Question II, which stock is more risky?

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