Question: how to solve Q.b? You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment

how to solve Q.b?

how to solve Q.b? You are trying to develop a strategy for

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 Returns D; the probability distribution shown to the right. Complete parts (a) through (c) below. Econo c w 0.1 Recession - 120 - 200 0.2 Slow growth 30 50 0.4 Moderate growth 90 140 0.3 Fast growth 150 190 a. Compute the expected return for stock X and for stock Y. The expected return for stock X is 75 . (Type an integer or a decimal. Do not round.) The expected return for stock Y is 103 . (Type an integer or a decimal. Do not round.) b. Compute the standard deviation for stock X and for stock Y. The standard deviation for stock X is D (Round to two decimal places as needed.)

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