Question: 5. (10 points) Assume you are advising a client on two different stocks, A and B. Stock A has a 10% expected return, a beta

5. (10 points) Assume you are advising a client on two

5. (10 points) Assume you are advising a client on two different stocks, A and B. Stock A has a 10% expected return, a beta coefficient of 0.9 , and a 35% standard deviation of expected returns. Stock B has a 12.5% expected return, a beta coefficient of 1.2 , and a 25% standard deviation. The risk free rate is 6%, and the market return is 11%. a. What stock do you recommend your client to buy? You must support your recommendation b. What stock adds the greatest amount of risk to a portfolio? You must support you

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