Question
Consider the total returns between Southeast Utilities and Precision Instruments for the different market trends. The summary statistics for these two stocks are as follows:
Consider the total returns between Southeast Utilities and Precision Instruments for the different market trends. The summary statistics for these two stocks are as follows:
| POSSIBLE OUTCOMES | PROBABILITY | RETURNS | |
| SOUTHEAST | PRECISION | ||
| Bullish Trend | 0.25 | 13% | 16% |
| Normal Trend | 0.50 | 5% | 11% |
| Recession | 0.25 | (7)% | 13% |
Calculate the risk for both the companys stock and comment which is better and less risky?
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Investments Analysis And Management
Authors: Charles P. Jones, Gerald R. Jensen
13th Edition
1118975588, 9781118975589
