Question: You are trying to develop a robust investment strategy for a fund management company in two different stocks. The following probability distribution shows Stock X

You are trying to develop a robust investment strategy for a fund management company in two different stocks. The following probability distribution shows Stock X and Stock Y: Economic Condition Probability Return Stock X Stock Y Recession 0.05-50-100 Slow growth 0.252050 Moderate growth 0.45100130 Fast growth 0.25150200 Compute: a) Expected return for Stock X and for Stock Y (9 pt.) b) Standard Deviation for Stock X and for Stock Y (9 pt.) c) Based on the prevailing market conditions, would you invest in stock X or stock Y? Explain. (2 pt.)

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