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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
You have estimated the following probability distributions of expected future returns for Stocks X and Y:
Stock X
Probability
0.1
0.2
0.4
0.2
0.1
Return
-10%
10%
15%
20%
40%
Stock Y
Probability
0.2
0.2
0.3
0.2
0.1
Return
2%
7%
12%
15%
16%
a. What is the expected rate of return for Stock X? Stock Y?
b. What is the standard devi...
1(------------10%-----------) +----------- .2-----------(10-----------%) -----------+ .-----------4(1-----------5%)----------- + -----------.2(-----------20%-----------) +----------- .1-----------(40-----------%) -----------= 1-----------5% -----------E(R-----------Y) -----------= .-----------2(2-----------%) -----------+ .-----------2(7-----------%) -----------+ .-----------3(1-----------2%)----------- + -----------.2(-----------15%-----------) +----------- .1-----------(16-----------%) -----------= 1-----------0% -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------