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Expected Rate of Return and Risk): XYZ Inc. is considering investing in one of two common stocks. Given the information that follows, which investment is
Expected Rate of Return and Risk): XYZ Inc. is considering investing in one of two common stocks. Given the information that follows, which investment is better, based on risk (measured by standard deviation) and the performance of each.
Action A Action B Probability Yield Probability Yield .30 11% .20 -5% .40 15% .30 6% .30 19% .30 14% .20 22%
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