Question: B eBook Problem 8-07 You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 15% 28% 11

 B eBook Problem 8-07 You are considering two stocks and have

B eBook Problem 8-07 You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 15% 28% 11 60 10 25 Stock B Return 29% 15 Probability of the Return 15 % 35 7 50 a. Which of the two stocks has the higher expected return? Round your answers to two decimal places. The return on Stock A 13.3 The return on Stock 13.19 Stock A has the higher expected return. b. Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places Standard deviation of Stock AS Standard deviation of Stock Stacka viss der c. Given your answers to the two previous questions, what stock is preferred? Stock is preferred 0 m

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