# Expected Return for Stocks

(Excel: Calculating means, standard deviations, covariance, and correlation) Given the

probability distributions of returns for stock X and stock Y, compute:

a. the expected return for each stock, and here

RETURNS

Probability Stock X Stock Y

0.2 5% 12%

0.2 10 10

0.4 12 8

0.15 14 0

0.05 18 2

https://brainmass.com/statistics/probability/expected-return-stocks-253030

#### Solution Preview

Expected Return = Summation of pi*ri where pi is the probability of a ...

#### Solution Summary

This solution shows step-by-step calculations to determine the expected return for each stock from the probability of stock X and stock Y.

$2.19