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hwo do i find the expected return of each stock please elaborate and use scientic clauclator to explain please AM Dec 16 2020 SECTION 1

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hwo do i find the expected return of each stock please elaborate and use scientic clauclator to explain please

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AM Dec 16 2020 SECTION 1 DO Time Left 0:35:51 Moid Khaled Lahwil: Attempt 1 Previous Page Next Page Page 7 of 9 Question 7 (6 points) You are given the probability distribution of the returns of 2 stocks A and B. You are asked to calculate: 1) The expected return of each stock 2) The standard Deviation of the return of each stock 3) the coefficient of variation of each stock stock Probability RA RB 0.1 30% -108 0.6 1096 10% -20%% 45%% 4) which stock will you recommend to buy? CV A 3.606 EV B 2 947 Buy B because it has a lower risk CV A 1 499 CV B 1.028 Buy B because it has a higher CV SDIRA 0.317 SD(RB 0.183 EIRA 10.25 E(RB 0.185 CVA 1,467 CV B 1 220 E 1D+ attempt/quiz start.frame_auto dinow-83712950spry-dutres18up .8718:1980cfa/04canb-OdfromQ#-D FINAL EXAM Dec 16 2020 SECTION 1 me Limit 1:30:00 Time Left:0:35:04 Moid Khaled Lahwil: Attempt 1 Page 1: Portfolio.return Portfolio return 20 11 Portfolio return 18.00% Page 2: portfolio beta 0.65 Stock A 28% Page 3: 249 16% Portfolio return 16.76% Page 4: Bu A and D as they are underpriced and sell B and C as they are overpriced Buy C and D as they are underpriced and sell A and B as they are overpriced Page 5: Portfolio Beta Stack A 235 B Page 6: 6 Portfolio Beta 0.8 Portfolio Beta D.875 Page 7: Bu A and B as they are undervalued and sell C and D as they overpriced Previous Page Next Page Page 6 of 9 Beno chin

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