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You are trying to develop a strategy for investing in two different stocks. The anticipated annual...

You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts (a) through (c) below.

Probability

Economic_condition

Stock_X

Stock_Y

0.1

Recession

-90

-110

0.3

Slow_growth

30

60

0.4

Moderate_growth

100

140

0.2

Fast_growth

150

210

a. Compute the expected return for stock X and for stock Y

b. Compute the standard deviation for stock X and for stock Y

Math   Statistics-And-Probability   
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