Question: Question 3: Risk and Return (Total marks = 5) (a) Calculate the expected return of an investment given the following probability distribution of returns: (b)

Question 3: Risk and Return (Total marks = 5) (a) Calculate

Question 3: Risk and Return (Total marks = 5) (a) Calculate the expected return of an investment given the following probability distribution of returns: (b) Calculate the standard deviation of the investment returns using the same probability distribution. (c) Compare the risk and return of two stocks, Stock X and Stock Y, using their expected returns and standard deviations. Interpret your findings. Question 3: Risk and Return (Total marks = 5) (a) Calculate the expected return of an investment given the following probability distribution of returns: (b) Calculate the standard deviation of the investment returns using the same probability distribution. (c) Compare the risk and return of two stocks, Stock X and Stock Y, using their expected returns and standard deviations. Interpret your findings

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