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

6) Consider the following probability distribution on the expected return of two stocks.
State of Economy Return on X Return on Y Probability
Boom 30%10%0.20
Neutral 10%20%0.50
Poor -30%5%0.30
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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