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You are given the probability distribution of the returns of 2 stocks A and B. You are asked to calculate: 1) The expected return of

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You are given the probability distribution of the returns of 2 stocks A and B. You are asked to calculate: 1) The expected return of each stock 2) The standard Deviation of the return of each stock 3) the coefficient of variation of each stock stock Probability RA RB 0.1 30% 10% -20% -10 10% 0.6 03 4) which stock will you recommend to buy? OVA CV B 3.606 2947 Buy B because it has a lower risk 1.499 OVA OVB 1028 Buy B because it has a higher CV SDRA SDIRB 0.317 0.189 ) ERB) 0.25 0.185 GVA 1 462 1.220

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