Question
You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 29 % 50 % 14 30 7
You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 29 % 50 % 14 30 7 20 Stock B Return Probability of the Return 35 % 25 % 13 50 8 25 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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