Question
Syntex, Inc. Is considering an investment in one of two common stocks. Giventhe information that follows, Which investment is better, based on risk(as measured by
Syntex, Inc. Is considering an investment in one of two common stocks. Giventhe information that follows, Which investment is better, based on risk(as measured by the standard deviation) and return?
| Common Stock A | Common Stock B | ||
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| Probability | Return | Probability | Return |
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| 0.30 | 11% | 0.20 | -5% |
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| 0.40 | 15% | 0.30 | 6% |
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| 0.30 | 19% | 0.30 | 14% |
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| 0.20 | 22% |
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Inflation Growth And International Finance
Authors: Alec Cairncross
1st Edition
113865308X, 978-1138653085
