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Consider the following information regarding 2 possible investments: Stocks J and K. Stock J: Expected return: 11.5% Standard deviation: 8% Stock K: Expected return: 8.2%
Consider the following information regarding 2 possible investments: Stocks J and K. Stock J: Expected return: 11.5% Standard deviation: 8% Stock K: Expected return: 8.2% Standard deviation: 6% Identify which of these investments you would prefer and why. A. Stock K, because it has the least risk B. Stock J, because it has the highest expected return C. Stock J, because it has the lowest coefficient of variation D. Stock K, because it has the highest coefficient of variation
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