Question: 6 ) Consider the following probability distribution on the expected return of two stocks. State of Economy Return on X Return on Y Probability Boom
Consider the following probability distribution on the expected return of two stocks.
State of Economy Return on X Return on Y Probability
Boom
Neutral
Poor
g Find the expected return on each stock and make purchase recommendation.
h Find the standard deviation of return of two stocks and calculate the coefficient of variations. Which stock has lower risk per unit return?
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