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Question 29 10 points Save Answer You are comparing stock A to stock B. Given the following information, which one of these two stocks should
Question 29 10 points Save Answer You are comparing stock A to stock B. Given the following information, which one of these two stocks should you prefer and why? Assume that all of your money must be Invested in just one type of stocks you invest everything in either A or B. Rate of Return if State Occurs State of the Economy Probability Stock A Stock Boom 05 204 18% Recession 0.5 10% 145 Suick Abecause it has a higher expected return and appears to be less risky than stock II Stock A, because it has a slightly lower expected retum but appears to be significantly less risky than mock B Stock B; because it has a higher expected retum and appears to be less risky than dock A Stock B; because it has a higher expected retum and appears to be just slightly rinkier than Nock A Stock As because it has an expected return of 7% and appears to be riskier
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