QUESTION
solve pleaseExpected returnsStocks X and Y have the following probability distributions of expected future returns:Probability X Y0.1 -15% -22%0.2 3 00.3 15 180.2 21 260.2 31 361.Calculate the expected rate of return, rY, for Stock Y (rX = 14.00%.) Round your answer to two decimal p
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. ________% = 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 3. Coefficient of variation = Standard deviation/ mean = 17.22/15.6 = 1.13 answer Happy to help
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