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Use the following scenario analysis for stocks X and Y to answer CFA Questions 7 through 9 Bull Market Bear Market 0.2 -20% -15% Normal

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Use the following scenario analysis for stocks X and Y to answer CFA Questions 7 through 9 Bull Market Bear Market 0.2 -20% -15% Normal Market Probability Stock X Stock Y 0.3 50% 10% 0.5 18% 20% A. What are the expected returns for stocks X and Y? (LO 5-2) B. What are the standard deviations of returns on stocks X and Y? (LO 5-2) a. Assume that of your $10,000 portfolio, you invest $9,000 in stock X and $1,000 in stock What is the expected return on your portfolio? (LO 5-3)

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