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You have estimated the following probability distributions of expected future returns for Stocks X and Y: Stock X Stock Y Probability Return Probability Return 0.1
You have estimated the following probability distributions of expected future returns for Stocks X and Y:
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 standard deviation of expected returns for Stock X? For Stock Y? Round your answers to two decimal places.
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