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You are considering the three securities listed below. Returns Probability Stock X Stock Y Stock Z 20% 3% -2% 6% 50% 11% 9% 9% 30%

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You are considering the three securities listed below. Returns Probability Stock X Stock Y Stock Z 20% 3% -2% 6% 50% 11% 9% 9% 30% 16% 21% 13% A. Calculate the expected return (mean) for each security. [6 Marks] B. Calculate the standard deviation of returns (risk) for each security. [9 Marks] C. As an investor, which stock will you prefer: Stock X or Stock Y? Why? [2 marks] D. What is the expected return on your portfolio if you have 30% in Stock X and 70% in Stock Z

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