Question
Suppose you have $100,000 to invest in the stock market. You have a choice between two stocks: Stock A and Stock B. Stock A is
Suppose you have $100,000 to invest in the stock market. You have a choice between two stocks: Stock A and Stock B.
Stock A is expected to return 8% annually, and Stock B is expected to return 12% annually.
You want to invest equal amounts in both stocks, and you want to keep the investments for 5 years.
What will be your expected return from each stock after 5 years, and what will be the total return from both stocks after 5 years?
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Statistics For Business And Economics
Authors: James T. McClave, P. George Benson, Terry T Sincich
12th Edition
032182623X, 978-0134189888, 134189884, 978-0321826237
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