Question: 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

 a. Calculate the expected return for each security. b. Calculate the

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?

d. Using your result in parts a and b, compute the following probabilities:

Stock A makes a return more than 18.9%

Stock B makes a return less than 1.3%

Stock C makes a return between 6.1% and 16.1%

2) You are considering the three securities listed below Returns Stock A 2% 10% 15% Probability 20% Stock B -3% Stock C 5% 8% 12% 50% 30% 8% 20%

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