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14 You have estimated the following probabilities for earnings per share of companies A and B : (a) Calculate the mean and variance of the

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14 You have estimated the following probabilities for earnings per share of companies A and B : (a) Calculate the mean and variance of the earnings per share for each company. (b) Explain how some investors might choose A and others might choose B if preferences are based on mean and variance. (c) Compare A and B, using the second-order stochastic dominance criterion

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