. Assume that a new law is passed which restricts investors to holding only one asset. A risk-averse investor is considering two possible assets as the asset to be held in isolation. The assets' possible returns and related probabilities (i.e., the probability distributions) are as follows: Asset X Asset Y Pr r Pr r 0.10  -3% 0.05  -3% 0.10 2  0.10 2  0.25 5  0.30 5  0.25 8  0.30 8  0.30 10   0.25 10 What is the standard deviation of Asset X? What is the expected return for Asset Y?

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