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Stocks X and Y have the following probability distributions of expected future returns: a. Calculate the...

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

a. Calculate the expected rate of return for Stock X and Y respectively.

b. Calculate the standard deviation of expected returns for X and Y respectively.

c. What are the CV for both X and Y respectively?

Probability X Y
Week 0.1 -10% -35%
Below Ave 0.2 2% 0
Average 0.4 12% 20%
Above Ave 0.2 20% 25%
Strong 0.1 38% 45%
Expected Return
Standard Deviation
CV
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