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11. Raz Mid Sdn. Bhd. is considering an investment in one of two common stocks. Given the following information that follows, which investment is better
11. Raz Mid Sdn. Bhd. is considering an investment in one of two common stocks. Given the following information that follows, which investment is better based on risk and standard deviation? Rate of return on Rate of return on Chance (probability of occurrence) Investment OB Investment IB 10 percent -10 percent 20 percent 5 percent 3 percent 12 percent 14 percent 8 percent 40 percent 15 percent 20 percent 25 percent 10percent 40 percent 7 percent 12. FM Corporation has prepared the following information regarding two investments under consideration. Calculate the expected rate of return and standard deviation. Which investment should be accepted? Common Stock A Common Stock B 0.20 -2 percent 0.10 4 percent 0.50 17 percent 0.30 0.30 6 percent 10 percent 26 percent 0.40 0.20 15 percent
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