Calculating expected return and standard deviation

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Reference no: EM1346523

You are considering the three securities listed below.

Returns
Probability Stock A Stock B Stock C
20% 2% -3% 5%
50% 10% 8% 8%
30% 15% 20% 12%

a. Calculate the expected return for each security.

b. Calculate the standard deviation of returns for each security.

c. Compare Stock A with Stocks B and C. Is Stock A preferred over the others?

Reference no: EM1346523

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