Chapter 5, Problem 7PS

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

Compute the

a. expected return for stock $X\text{and}\text{for}\text{stock}Y.$

b. standard deviation for stock $X\text{and}\text{for}\text{Stock}Y.$

c. Would you invest in $X\text{or}\text{Stock}Y?$ Explain.