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You are considering two stocks and have determined the following information: Stock A Return 27% 16 6 Probability of the Return 20% 35 45 Stock B Return 32% 19 Probability of the Return

You are considering two stocks and have determined the following information: Stock A Return 27% 16 6 Probability of the Return 20% 35 45 Stock B Return 32% 19 Probability of the Return 15% 60 25 9 a. Which of the two stocks has the higher expected return? Round your answers to two decimal places. The return on Stock A: % The return on Stock B: 96 -Select has the higher expected retum. b. Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation of Stock A: Standard deviation of Stock B: -Select-vis riskier. c. Given your answers to the two previous questions, what stock is preferred? Select is preferred.

Apr 18 2021 View more View Less

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