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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
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