Stocks x and y have the following probability distributions, Financial Management

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Stocks x and y have the following probability distributions

Stocks X and Y have the following probability distributions of expected future returns..

Probability X Y

0.1 (10%) (35%)

0.2 2 0

0.4 12 20

0.2 20 25

0.1 38 45

A) Calculate the expected rate of return

B) Calculate the standard deviation of expected returns for stock X (y=20.35%) and the coefficient variation for stock Y. Is it possible that most investors with regard stock y as being less risky than stock x?

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