solve please Expected returns Stocks X and Y have the following probability dist

Question

solve please
Expected returns
Stocks X and Y have the following probability distributions of expected future returns:
Probability X Y
0.1 -15% -22%
0.2 3 0
0.3 15 18
0.2 21 26
0.2 31 36

1.Calculate the expected rate of return, rY, for Stock Y (rX = 14.00%.) Round your answer to two decimal places. ________%

2.Calculate the standard deviation of expected returns, ?X, for Stock X (?Y = 17.22%.) Round your answer to two decimal places.
________%

c. Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.
_________%

Explanation / Answer

1.Calculate the expected rate of return, rY, for Stock Y (rX = 14.00%.) Round your answer to two decimal places. ________%
= 0.1*-22 +0.2*0 + 0.3*18 + 0.2*26 + 0.2*36 = 15.6% answer

2.Calculate the standard deviation of expected returns, ?X, for Stock X (?Y = 17.22%.) Round your answer to two decimal places.
________% =

3. Coefficient of variation = Standard deviation/ mean = 17.22/15.6 = 1.13 answer

Happy to help

Return Return-X (return-X)^2
-1.5 -4.3 18.49
0.6 -2.2 4.84
4.5 1.7 2.89
4.2 1.4 1.96
6.2 3.4 11.56 Average return (X) 2.8
39.74







SD = 17.77227

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