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Harold MacGregor is considering buying stocks for the first time and is looking for a single company in which he'll make a major investment. He's

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Harold MacGregor is considering buying stocks for the first time and is looking for a single company in which he'll make a major investment. He's narrowed his search to two firms, Evanston Water Inc. (a public utility) and Astro Tech Corp. (a new high-tech company). Public utilities are low-risk stocks because they are regulated monopolies High tech firms are high-risk because new technical ideas can succeed tremendously, fail completely or end up in between Harold has studied the history and prospects of both firms and their industries, and with the help of his broker has made a discrete estimate of the probability distribution of returns for each stock as follows: Evanston Water ke P (kg) 6% .05 8 .15 10 .60 .15 Astro Tech P (ka) - 100% .15 0 .20 15 .30 30 .20 130 .15 12. .05 Required: 1. calculate the coefficient of variation for stock E's return. 2. calculate the coefficient of variation for stock A's return. 3. What do you suggest as to which stock should Harold select

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