HW#$6$

Consider the following probability distribution for Stock X and Y:

Probability

X

Y

$0\mathrm{.}1$

$20\%$

$40\%$

$0\mathrm{.}3$

$16\%$

$12\%$

$0\mathrm{.}3$

$10\%$

$30\%$

$0\mathrm{.}3$

$15\%$

$10\%$

Assuming that the free rate is $4\%,$ calculate the Expected Return, Standard Deviation, Coefficient of Variation, and Sharp Ratios for stocks A and B$.$ Which stock is a better investment based on risk$-$return trade$-$off? Briefly explain your answer.

answer in Excel