Question: 3 ) You are considering the three securities listed below. Returns Probability Stock A Stock B Stock C 2 0 % 2 % - 3

3) 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?

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