Question: Question 1: The following table shows the returns on two stocks, Xand Y, in three different states of the world, and the probability of each

Question 1: The following table shows the returns on two stocks,

Xand Y, in three different "states of the world", and the probability

Question 1: The following table shows the returns on two stocks, Xand Y, in three different "states of the world", and the probability of each state occurring. Returns State Probability Stock X Stock Y H 20% +32% +52% M 40% +12% -3% L 20% -18% +27% a} For both stocks X and Y, compute expected return and volatility. [10 Marks]

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