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Suppose you are a risk-averse person that does not like volatile returns. Stock A offers a steady return of 5% per year. Stock B offers

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Suppose you are a risk-averse person that does not like volatile returns. Stock A offers a steady return of 5% per year. Stock B offers a 0% return with 50% probability and a 10% return with 50% probability. Answer the following questions: 1. Why would you prefer Stock A? 2. In which way should the conditions of Stock B change for you to prefer it over Stock A? Edit View Insert Format Tools Table

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