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You are considering two stocks and have determined the following information: Stock A Return 24% 14 Probability of the Return 55% 10 35 13 Stock
You are considering two stocks and have determined the following information: Stock A Return 24% 14 Probability of the Return 55% 10 35 13 Stock B Return 27% 12 Probability of the Return 30% 45 6 25 a. 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- v has the higher expected return. b. 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-vis riskier. c. Given your answers to the two previous questions, what stock is preferred? -Select- is preferred
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