Which investment would investors prefer

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A- Investments B and C both have the same standard deviation of 20% and have the same correlation to the market portfolio. If the expected return on B is 15% and the expected return on C is 18%, which investment would investors prefer?

B- The market return is 10% and the risk free rate is 2%. If the return on stock A is 12% with a beta of 1.5 and the variance of stock A is 25%, what is the Sharpe Ratio for stock A?

Reference no: EM13809215

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