You have estimated the following probabilities for earnings per share of companies X and Y:

Probability	X	Y
0.2	0.5	0
0.3	1	0.5
0.1	1.5	0.5
0.4	2	1

1. Calculate the mean and the standard deviation of the earnings per share for each company.
2. Explain how some investors might choose X and others might choose Y if preferences are based on mean and variance. Illustrate your answer with graphs.
3. Compare X and Y, using the second-order stochastic dominance criterion.