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You plan to invest 1000 in a corporate bond fund or in a common stock fund. The following information about the annual return (per 1000)

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You plan to invest 1000 in a corporate bond fund or in a common stock fund. The following information about the annual return (per 1000) of each of these investments under different economic conditions is available, along with the probability that each of these economic conditions will occur: Probability Economic Condition Corporate Bond FundCommon Stock Fund .10 Recession -70 -300 .15 Stagnation 30 -100 .35 80 100 .30 Slow growth Moderate growth High Growth 100 150 .10 120 350 A. Expected Return for Stock X and Stock Y? B. Standard Deviation for Stock X and Stock Y? C. Covariance of Stock X and Stock Y? D. Would you invest in Stock X or Y

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