# Question

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 following probability distribution:

Compute the

a. Expected return for stock X and for stock Y.

b. Standard deviation for stock X and for stock Y.

c. Would you invest in stock X or stock Y? Explain.

Compute the

a. Expected return for stock X and for stock Y.

b. Standard deviation for stock X and for stock Y.

c. Would you invest in stock X or stock Y? Explain.

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