Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 -14% -35% 0.2 3 0 0.3 16 22 0.3 22 27 0.1 39 40
Calculate the expected rate of return, rY, for Stock Y (rX = 14.50%.) Round your answer to two decimal places.
Calculate the standard deviation of expected returns, σX, for Stock X (σY = 20.38%.) Round your answer to two decimal places.
Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.