You have estimated the following probability distributions of expected future returns for Stocks X and Y: (Please show calculations using excel)

Stock X				Stock Y
Probability		Return		Probability		Return
0.1		-10	%	0.2		4	%
0.3		12		0.2		6
0.3		14		0.2		12
0.2		30		0.2		18
0.1		45		0.2		30

What is the expected rate of return for Stock X? Stock Y? Round your answers to one decimal place.

Stock X

Stock Y

What is the standard deviation of expected returns for Stock X? For Stock Y? Round your answers to two decimal places.

Stock X %

Stock Y %

1. Which stock would you consider to be riskier?

_____ is riskier because it has a _____ standard deviation of return