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Assume that investor's care about the first four moments of the return distribution. Given the following information which investment would investors prefer? Stock A: Mean
Assume that investor's care about the first four moments of the return distribution. Given the following information which investment would investors prefer? Stock A: Mean Return = 10%, Standard Deviation =20%, Skewness = 3, Kurtosis = 5 Stock B: Mean Return = 10%, Standard Deviation =20%, Skewness = 2, Kurtosis = 5 A. Stock A B. Investors would be indifferent. C. none of the answers listed here. D. Stock B
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