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Evaluate IBM, HP and S&PP 5 0 0 index on a risk return basis. Compute expected return and standard deviations using equations 7 . 2

Evaluate IBM, HP and S&PP 500 index on a risk return basis. Compute expected return and standard deviations using equations 7.2 and 7.3 in your text, assuming all outcomes are equally likely. You may use the formulas stdev.p to check your work. Assume the risk-free rate is 2.0%. Which investment is best if evaluated on the tradeoff between risk and return? Rank the investments, 1(best) through 3(worst). A partial
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