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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   -140   -110
0.2   Slow_growth   60   20
0.4   Moderate_growth   130   100
0.3   Fast_growth   200   170

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

The expected return for stock X is

​(Type an integer or a decimal. Do not​ round.)

The expected return for stock y is

​(Type an integer or a decimal. Do not​ round.)

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

The standard deviation for stock X is

(Type an integer or a decimal. Do not​ round.)

The standard deviation for stock y is

(Type an integer or a decimal. Do not​ round.)
Math   Statistics-And-Probability   
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