Please, if possible use Excel formulas, cell references, & horizontal timelines to show work.

You have estimated the following probability distributions of expected future returns for Stocks X and Y:

Stock X				Stock Y
Probability		Return		Probability		Return
0.2		-10	%	0.3		2	%
0.2		12		0.3		8
0.2		14		0.2		12
0.3		20		0.1		18
0.1		40		0.1		30

What is the expected rate of return for Stock X? Stock Y? Round your answers to one decimal place. Stock X: %

Stock Y: %

What is the standard deviation of expected returns for Stock X? For Stock Y? Round your answers to two decimal places. Stock X: %

Stock Y: %

1. Which stock would you consider to be riskier? -Select- is riskier because it has a -Select- standard deviation of returns.

a. What is the expected rate of return for Stock X ? Stock Y ? Round your answers to one decimal place. Stock X: % Stock Y : % b. What is the standard deviation of expected returns for Stock X? For Stock Y? Round your answers to two decimal places. Stock X : % Stock Y : % c. Which stock would you consider to be riskier? is riskier because it has a standard deviation of returns