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NO. 3 (12 Marks) The Stock A and Stock B have the following probability distributions: Probability 0.3 15% 20% 0.4 9 5 0.3 18 12
NO. 3 (12 Marks) The Stock A and Stock B have the following probability distributions: Probability 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for Stock A and Stock B. b. Calculate the standard deviations for Stock A and Stock B. c. Calculate the coefficients of variation for Stock A and Stock B. d. Which asset is a better investment from a risk-averse investors perspective?
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