Question: [15 points] You have been given two probability distributions for the holding-period return for ATT and BBY stocks, respectively: ATT BBY HPR 25.00% 15.00% -9.00%

[15 points] You have been given two probability distributions for the

[15 points] You have been given two probability distributions for the holding-period return for ATT and BBY stocks, respectively: ATT BBY HPR 25.00% 15.00% -9.00% State of the EconomyProbabilityHPR Probability | Boom Normal Growth Recession 0.4 0.4 0.2 30.00% 10.00% -10.00% 0.4 0.35 0.25 a. What are the expected holding-period returns for ATT and BBY stocks? b. What are the expected standard deviations for ATT and BBY stocks? c. What are the expected variances for ATT and BBY stocks? d' Assuming that the risk-free rate is 4%, what are the Sharp-ratios for ATT and BBY, respectively? Which stock would you prefer? Why? e

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