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15. You are comparing stock A to stock B. Given the following information, which one of these two stocks should you prefer and why? Return
15. You are comparing stock A to stock B. Given the following information, which one of these two stocks should you prefer and why? Return if State Occurs Stock A Stock B State of Economy Boom Normal Probability of State of Economy 70 30% 15% 9. 6. -8. A. A; because it has highest possible return. B. A; because it has an expected return which is 0.3% higher than stock B. C. A; because it has an expected return of 8.4%. D. B; because it has the same return as stock A and is less risky. E. B; because it has a higher expected return than stock A
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