Problem 8-6 Expected returns Stocks X and Y have the following probability

Problem 8-6
Expected returns

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

Calculate the expected rate of return rY for Stock Y (rX = 12.60%.) Round your answer to two decimal
places.
%

Calculate the standard deviation of expected returns %u03C3X for Stock X (%u03C3Y = 20.54%.) Round your
answer to two decimal places.
%

Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.

Is it possible that most investors might regard Stock Y as being less risky than Stock X?
-Select- I II III IV V Item 4