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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 6% 0.2 -9% 0.1 12 0.3 9 0.3 16 0.2 13 0.4 20 0.1 17 0.1 35 0.2 30 a. What is the expected rate of return for Stock X? Stock Y? Round your answers to one decimal place. Stock X: % Stock Y: % b. 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: % c. Which stock would you consider to be riskier? -Select- Vis riskier because it has a -Select- v standard deviation of returns
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