Stocks X and Y have the following probability distributions of expected future returns:?

... Probability X Y 0.1 – 10% – 35% 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 a) Calculate the expected rate of return, ḱy, for Stock Y (ḱx =

...
Probability X Y 0.1 – 10% – 35% 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45
a) Calculate the expected rate of return, ḱy, for Stock Y (ḱx = 12%). b) Calculate the standard deviation of expected returns, σx, for Stock X (σy = 20.35%). c) Calculate the coefficient of variation for Stock Y. d) Is it possible that most investors will regard Stock Y as being less risky than Stock X? Explain

or:... Probability X Y 0.1 \u2013 10% \u2013 35% 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 a) Calculate the expected rate of return, \u1e31y, for Stock Y (\u1e31x = 12%). b) Calculate the standard deviation of expected returns, \u03c3x, for Stock X (\u03c3y = 20.35%). c) Calculate the coefficient of variation for Stock Y. d) Is it possible that most investors will regard Stock Y as being less risky than Stock X? Explain

Tags:probability,