You have estimated the following probability distributions of expected future returns for Stocks X and...
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Finance
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
-10
%
0.2
2
%
0.1
9
0.3
8
0.4
16
0.2
11
0.2
25
0.1
14
0.2
40
0.2
25
What is the expected rate of return for Stock X? Stock Y? Round your answers to one decimal place. Stock X: %
Stock Y: %
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: %
Which stock would you consider to be riskier? -Select-Stock XStock YItem 5 is riskier because it has a -Select-higherlowerItem 6 standard deviation of returns.
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