1. Stocks X and Y have the following probability distributions of expected futur

1. Stocks X and Y have the following probability distributions of expected future returns: PROBABILITY X Y Rate of return Y Rate of return X 10% -10% -35% -4% -1% 20% 20% 0% 0% 4% 40% 12% 20% 8% 5% 20% 20% 25% 5% 4% 10% 38% 45% 5% 4% a.Calculate the expected rate of return khat for Stock Y (expected return for Stock X Kx hat equals 12%). b. Calculate the standard deviation of expected returns for Stock X.(that for Stock Y is 20.35%).Now Calculate the coefficient of variation for Stock Y.Is it possible that most investors might regard Stock Y as being less risky than Stock X?Explain.