Question: 5 . 5 2 You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $ 1

5.52 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:
\table[[Probability,Economic Condition,Returns],[Stock x,Stock Y],[0.1,Recession,-50,-100],[0.3,Slow growth,20,50],[0.4,Moderate growth,100,130],[0.2,Fast growth,150,200]] anwer using excel
Compute the
a. expected return for stock x and for stock Y.
b. standard deviation for stock x and for stock Y.
c. covariance of stock x and stock Y.
d. Would you invest in stock x or stock Y? Explain.
 5.52 You are trying to develop a strategy for investing in

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