Question: AS PER CANADA Question 20 (1 point) The following table shows the annual expected returns for two stocks. Probability of return Stock A Stock B

AS PER CANADA Question 20 (1 point) The following table shows the AS PER CANADA

Question 20 (1 point) The following table shows the annual expected returns for two stocks. Probability of return Stock A Stock B 0.10 -5% -10% 0.20 0.40 7 8 0.20 12 0.10 17 24 2 1 16 Compare the risk and return from Stock A, Stock B and the portfolio of both stocks. Where a risk averse investor will invest? Portfolio Stock B A different combination of Stock A and Stock B. Stock A

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