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You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $ 1 , 0 0 0

You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts (a) through (g below.
\table[[,,Returns],[Probability,Economic Condition,Stock X,Stock Y],[0.1,Recession,-50,-200],[0.3,Slow growth,20,40],[0.4,Moderate growth,110,140],[0.2,Fast growth,170,190]]
a. Compute the expected return for stock x and for stock Y.
The expected return for stock x is $
(Type an integer or a decimal. Do not round.)
The expected return for stock Y is $
(Type an integer or a decimal. Do not round.)
b. Compute the standard deviation for stock x and for stock Y.
The standard deviation for stock x is $
(Round to two decimal places as needed.)
The standard deviation for stock Y is $
(Round to two decimal places as needed.)
c. Would you invest in stock x or stock Y? Explain. Choose the correct answer below. risk of stock Y, stock x should be invested in. risk of stock x, stock Y should be invested in.
C. Based on the expected value, stock Y should be chosen. However, stock Y has a larger standard deviation, resulting in a higher risk, which should be taken into consideration.
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