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You are interested in the following stocks X and Y. You have done some research and calculate the return for each year as shown below
You are interested in the following stocks X and Y. You have done some research and calculate the return for each year as shown below Year 1 2 3 Probability 0.60 0.15 0.25 Returns on Stock X 9% 10% -12% Returns on Stock Y 32% -6% -14% What are the average return and standard deviation for stock X during the past 3 years? 2.5% and 8.65% % 3.9% and 9.18% % 3.0% and 84.39% 4.2% and 9.52$\%
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