Please answer (type your calculation work) on the space provided for each question.

The following probability distributions of return for Stock X have been estimated:

Probability Stock X

0.3 6%

0.4 9%

0.3 12%

I.Calculate the expected rate of return (), standard deviation (), and the coefficient of variation (CV) for Stock X.(6 points)

The following probability distributions of return for Stock Y have been estimated:

Probability Stock Y

0.3 3%

0.4 4%

0.3 5%

II.Calculate the expected rate of return (), standard deviation (), and the coefficient of variation (CV) for Stock Y.(6 points)

III.Based on the calculation of Question I and Question II, which stock is more risky?(1 point)