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AS PER CANADA Question 20 (1 point) The following table shows the annual expected returns for two stocks. Probability of return Stock A Stock B

image text in transcribedAS PER CANADA

Question 20 (1 point) The following table shows the annual expected returns for two stocks. Probability of return Stock A Stock B 0.10 -5% -10% 0.20 0.40 7 8 0.20 12 0.10 17 24 2 1 16 Compare the risk and return from Stock A, Stock B and the portfolio of both stocks. Where a risk averse investor will invest? Portfolio Stock B A different combination of Stock A and Stock B. Stock A

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