Question: Return (%) Probability 5 0.3 10 0.5 15 0.2 a) Calculate the expected return of an investment given the following probability distribution of returns: (b)

Return (%) Probability
5 0.3
10 0.5
15 0.2

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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