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You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 17 % 10 % 11 10 10
You are considering two stocks and have determined the following information:
Stock A | Return | Probability of the Return | ||
17 | % | 10 | % | |
11 | 10 | |||
10 | 80 |
Stock B | Return | Probability of the Return | ||
24 | % | 10 | % | |
18 | 20 | |||
6 | 70 |
Which of the two stocks has the higher expected return? Round your answers to two decimal places.
The return on Stock A: %
The return on Stock B: %
-Select-Stock AStock BItem 3 has the higher expected return.
Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places.
Standard deviation of Stock A:
Standard deviation of Stock B:
Given your answers to the two previous questions, what stock is preferred?
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