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Month $ Closing Price for Stock A $ Closing Price for Stock B Feb 20 30 Mar 21 31 April 23 28 May 22 34

Month

$ Closing Price for Stock A

$ Closing Price for Stock B

Feb

20

30

Mar

21

31

April

23

28

May

22

34

June

21

30

July

24

32

Aug

26

31

Q5. The annualized rate of return of stock A is and its means (interpretation):

..

Q6. The annualized return of stock B is

Q7. A multiple-choice question. Based on the Risk/Reward ratio:

a. Stock A is better with a risk-reward ratio of

b. Stock B is better with a risk-reward ratio of ..

c. Both are the same

d. Cannot be determined since we do not have all the data

Your answer:

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