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QUESTION 3 Risk and Return Sintok Corporation has collected information on the following three investments. Which investment is the most favourable based on the information
QUESTION 3 Risk and Return
Sintok Corporation has collected information on the following three investments. Which investment is the most favourable based on the information presented?
Stock A |
| Stock B |
| Stock C | |
Probability | Return | Probability | Return | Probability | Return |
0.15 | 2% | 0.25 | -3% | 0.1 | -5% |
0.4 | 7% | 0.5 | 20% | 0.4 | 10% |
0.3 | 10% | 0.25 | 25% | 0.3 | 15% |
0.15 | 15% |
|
| 0.2 | 30% |
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