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2. A manager of mutual fund is considering buying 10,000 shares of one of the following stocks: Stock X Stock B Stock C Possible Probability
2. A manager of mutual fund is considering buying 10,000 shares of one of the following stocks: Stock X Stock B Stock C Possible Probability Probability Probability Possible return Possible return return -5% 25% 2% 10% 4% 25% 10% 50% 15% 50% 20% 45% 25% 25% 30% 40% 35% 30% a) Compute the expected rate of return for each stock b) Compute the standard deviation for each stock c) Compute the coefficient of variation for each stock d) Which stock should the manager of the fund buy? Why
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