Comparison of two variables using standard deviation

Reference no: EM1311332

Comparison of two variables using standard deviation:

You have estimated the following probability distributions of expected returns for Stocks X & Y:

Stock X	Stock Y
Probability Return	Probability Return
0.1 -10%	0.2 2%
0.2 10	0.2 7
0.4 15	0.3 12
0.2 20	0.2 15
0.1 40	0.1 16

A. What is the standard deviation of expected returns for Stock X? For Stock Y?

Standard Deviation of X =

Standard Deviation of Y =

B. Which stock would you consider to be riskier? Why?

Reference no: EM1311332

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