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help with calculations As an MBA graduate who has studied strategic financial management, you are approached by one of your relatives who has recently come

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help with calculations

As an MBA graduate who has studied strategic financial management, you are approached by one of your relatives who has recently come into a large inheritance and is looking to buy shares. Your relative is interested in two shares and provides you with the below information: Share A: In a boom period that has a 0,55 chance of happening the observed return on this share will be 25% and in a recession which has a 0,45 chance of happening the share exhibits amrobserved return of 7%. Share B: In a boom period that has a 0,55 chance of happening the observed return on this share will be 10% and in a recession which has a 0,45 chance of happening the share exhibits an observed return of 17%. QUESTION: Identify which investment choice would be best for your relative, who is risk averse, by calculating the expected returns and standard deviation for both shares

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