Solution-Which of the stocks is expected to yield a higher

Which of the stocks is expected to yield a higher return

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Reference no: EM132875665

Question - Given six years of percentage return of Stock A and Stock B, identify the expected return, and risk of each instrument. Assume that each year, has equal chances of reoccurrence.

	Stock A	Stock B
20X1	10	20
20X2	-15	-20
20X3	20	-10
20X4	25	30
20X5	-30	-20
20X6	20	60

Required -

a. Which of the two stocks is riskier? Why?

b. Which of the stocks is expected to yield a higher return? Why?

c. Where will you invest?

Reference no: EM132875665

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Which of the stocks is expected to yield a higher return

Reference no: EM132875665

Reference no: EM132875665

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