Question: A data dictionary contains information about database objects such as tables, columns, datatypes true false Question 7. Aziza Company is considering an investment in one
Question 7. Aziza Company is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return? (15 Marks) Common Stock A Common Stock B Probability Return Probability Return 0.3 11% 0.2 -5% 0.4 15% 0.3 6% 0.3 19% 0.3 14% 0.2 22% Use the following end-of-year price data to answer the following questions a. Compute the annual rates of return for each time and for both firms. b. Calculate both the arithmetic and the geometric mean rates of return for the entire three-year period using your annual rates of return from part a. (Note: You may assume that neither firm pays any dividends.) c. Compute a three-year rate of return spanning the entire period (i.e., using the beginning price for Period 1 and ending price for Period 4). Time B 10 $ 12 $ 8 $ 32 $ 3 12 $ 28 $ 15$ 27 $ Activate Windows 1 2 4
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