Compute the expected return for each security

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Reference no: EM133040687

Question - Raymond is considering the three securities listed below for investment opportunities:

Returns Probability

Stock A

Stock B

Stock C

20%

2%

-3%

5%

50%

10%

8%

8%

30%

15%

20%

12%

Required -

(i) Compute the expected return for each security.

(ii) Find the standard deviation of returns for each security.

(iii) Based on answers of question (a) and (b) above, determine whether Stock A is preferred over the others.

Reference no: EM133040687

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