Question: Assuming the risk-free rate is 4%, and using the information about the future stock performance and corresponding probabilities, answer the following three questions. Probability Company

Assuming the risk-free rate is 4%, and using the information about the future stock performance and corresponding probabilities, answer the following three questions. Probability Company X(1x) Company Y (ry) .2 -10% -10% .5 0% 3 40% 15% 2% 23. Calculate the expected rate of return for Company X. 24. Company Y has a 3.5% expected return. Calculate the standard deviation of return for Company Y. Show your work! 25. Explain briefly about the relation of high-risk and high-return in investments. Be sure to address the types of risk and return that the relation is implying. Also explain why gambling, which is a high risk, does not usually results in a high return

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