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The expected rate of return and risk: Kelly B. Stites, Inc. is considering an investment in one of two portfolios. Given the information tha follows,
The expected rate of return and risk: Kelly B. Stites, Inc. is considering an investment in one of two portfolios. Given the information tha follows, which investment is better, base on risk ( as measured by the standard deviation) and the expected rate of return?
Portfolio A | Portfolio B | ||
Probability | Return | Probability | Return |
0.15 | -1% | 0.05 | 4% |
0.57 | 17% | 0.25 | 9% |
0.28 | 26% | 0.38 | 13% |
0.32 | 16% | ||
a the expected rate of return for portfolio B is ________ round to two decimal places
b the standard deviation for fortfolio B is ____________ round to two decimal places
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