. You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the following probability distribution:

		Returns
Probability	Economic Condition	Stock x	Stock y
0.1	Recession	-100	50
0.3	Slow Growth	0	150
0.3	Moderate Growth	80	-20
0.3	Fast Growth	150	-100

Compute the following:

1. expected return for stock X and for stock Y.
2. standard deviation for stock X and for stock Y.
3. covariance of stock X and stock Y.
4. expected return for a portfolio with 30% X and 70% Y
5. standard deviation of portfolio in d
6. Choose which is the best investment among X, Y and portfolio .3X and .7Y. Justify your answer.