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6. Expedia Inc. is traded on NASDAQ and Red Lion Hotels is traded on NYSE. Bao Chenyang owns shares in both companies. He wants to

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6. Expedia Inc. is traded on NASDAQ and Red Lion Hotels is traded on NYSE. Bao Chenyang owns shares in both companies. He wants to estimate what his expected return and risk for each stock will be for next year. Expedia Red Lion Hotels Possible Return Probability. Possible Return Probability 20% 20% -15% 20% 30% 50% 20% 50% 40% 30% 60% 30% a) Which stock is likely to give her a better return? b) Which stock is riskier? (show your calculations). c) Calculate the risk per unit of return for each stock. (10pts)

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