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rank the following stocks in decreasing order of risk-to-reward preference for an investor: Stock A: Historically generated the following rates of return over the past
rank the following stocks in decreasing order of risk-to-reward preference for an investor: Stock A: Historically generated the following rates of return over the past 6 years: 12%, 18%, -6%, 11%, 2%, and 9%. Stock B: Expected to generate 18%, -8%, and 12% under different states of the economy, the probability of optimistic and pessimistic scenarios is 20% each. Stock C: The beta of the stock is 1.8, the risk-free rate = 4%, the market risk-premium = 14%, and the standard deviation of the market = 25%; the correlation between market and stock returns is 0.78
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