The probability distributions of possible returns for Stocks X and Y are as follows: Economic State Probability X Y Recession 0.2 -15% -5% Normal 0.6 20% 15% Boom 0.2 30% 25% Calculate the expected...

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Finance

The probability distributions of possible returns for Stocks Xand Y are as follows:
EconomicState               Probability                 X                    Y
Recession                            0.2                          -15%              -5%
Normal                                0.6                          20%                15%
Boom                                  0.2                          30%                25%
Calculate the expected return on each stock. Show yourcalculations. (8 points)
Calculate the standard deviation for each stock. Show yourcalculations. (10Points)
Which stock do you consider riskier? Explain. (2Points)
In which stock would you prefer to invest? Explain. (2Points)

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The probability distributions of possible returns for Stocks Xand Y are as follows:EconomicState Probability X YRecession 0.2 -15% -5%Normal 0.6 20% 15%Boom 0.2 30% 25%Calculate the expected return on each stock. Show yourcalculations. (8 points)Calculate the standard deviation for each stock. Show yourcalculations. (10Points)Which stock do you consider riskier? Explain. (2Points)In which stock would you prefer to invest? Explain. (2Points)

The probability distributions of possible returns for Stocks X and Y are as follows: Economic State Probability X Y Recession 0.2 -15% -5% Normal 0.6 20% 15% Boom 0.2 30% 25% Calculate the expected...

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Finance

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