Question
ou are considering two stocks and have determined the following information: Stock A Return Probability of the Return 18 % 25 % 14 40 7
ou are considering two stocks and have determined the following information:
Stock A | Return | Probability of the Return | ||
18 | % | 25 | % | |
14 | 40 | |||
7 | 35 |
Stock B | Return | Probability of the Return | ||
20 | % | 20 | % | |
14 | 45 | |||
6 | 35 |
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Which of the two stocks has the higher expected return? Round your answers to two decimal places.
The return on Stock A: %
The return on Stock B: %
-Select-Stock AStock BItem 3 has the higher expected return.
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Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places.
Standard deviation of Stock A:
Standard deviation of Stock B:
-Select-Stock AStock BItem 6 is riskier.
-
Given your answers to the two previous questions, what stock is preferred?
-Select-Stock AStock BItem 7 is preferred.
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