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The figure in the popup window, shows the one - year return distribution for RCS strock. The following table, shows the one - year return
The figure in the popup window, shows the oneyear return distribution for RCS strock. The following table, shows the oneyear return distribution of Startup, Inc. Characterize the difference betwen the two stock. What tradeoffs would you face in chooseing one to hold?
Selecte all the choices that apply
A RCS has lower expected return.
B RCS has lower volatility.
C All investors will prefer to hold the stock with the higher return.
D All investors will prefer to hold the stock with the lower volatility.
E It is impossible to know which stock investors will prefer to hold, without knowing more about their preferences for risktaking and the other investments they may be holding
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