# Answer to Question #51675 in Finance for abdulla sabit

Question #51675

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

Probability ------- X -------- Y

0.15 -10% -20%

0.20 2 0

0.30 10 20

0.20 20 25

0.15 30 40

1)Calculate the expected rate of return for both stocks.

2)Calculate the standard deviation for both stocks.

3)Which stock is risky and why?

Probability ------- X -------- Y

0.15 -10% -20%

0.20 2 0

0.30 10 20

0.20 20 25

0.15 30 40

1)Calculate the expected rate of return for both stocks.

2)Calculate the standard deviation for both stocks.

3)Which stock is risky and why?

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