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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

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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 -12% 0.2 4% 0.1 9 0.2 9 0.5 17 0.2 12 0.1 30 18 0.2 45 0.1 19 a. What is the expected rate of return for Stock X7 Stock Y? Round your answers to one decimal place. Stock X: 96 0.3 Stock Y: % b. What is the standard deviation of expected returns for Stock X? For Stock Y? Round your arowers to two decimal places. Stock X: 96 Stock Y: 96 c. Which stock would you consider to be riskler? -Select- is riskier because it has a -Select-standard deviation of returns

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