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QUESTION 2 You are given the following information concerning two stocks A. Calculate the mean of returns on stock A and stock B respectively (

image text in transcribed QUESTION 2 You are given the following information concerning two stocks A. Calculate the mean of returns on stock A and stock B respectively ( 7 marks) B. Calculate standard deviation of the returns for stocks A and B respectively (8marks) C. What would be your decision if you are to choose between Investment A and B and why? (10 marks) D. J. Asare is an established, listed company producing a range of central heating systems for sale to builders' merchants. As a result of increasing demand for its products, the directors have decided to expand production, and therefore to raise more long term finance. Discuss the main factors which should be taken into account when choosing between long-term loan capital and ordinary share capital. (10marks)

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