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Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considaring an investment in one of
Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considaring an investment in one of two portfolios. Given the infommation that follows, which investment is better, based on risk (as measurad by the standard deviation) and return as measured by the expected rate of return? Portfolio A Portfollo B Probability 0.22 0.46 0.32 Probability 0.05 0.32 0.35 0.28 Return -4% 17% 23% Return 10% 10% 16% a. The expected rate of return for portfolio A is 14.3 %. (Round to two decimal places ) The standard deviation of portoio Round to tro decimal places) Round to two decimal places)
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