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You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 2 3 % 3 5 % 1
You are considering two stocks and have determined the following information:
Stock A Return Probability of the Return
Stock B Return Probability of the Return
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
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:
Select
is riskier.
Given your answers to the two previous questions, what stock is preferred?
Select
is preferred.
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