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You are considering two stocks and have determined the following information: a. Which of the two stocks has the higher expected return? b. Which stock

You are considering two stocks and have determined the following information:

a. Which of the two stocks has the higher expected return?

b. Which stock is riskier?

c. Given your answers to the two previous questions, what stock is preferred?
Stock A Return 18% 14 10 Probability of the Return 25% 50 25 Stock B Return 22% 12 Probability of the Return 10% 60 11 30

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