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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? Round your
You are considering two stocks and have determined the following information:
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:
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:
is riskier.
c Given your answers to the two previous questions, what stock is preferred?
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