Question: (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of


(Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios Given the information that follows, which investment is better based on risk (as measured by the standard deviation) and return as measured by the expected rate of return? Portfolio B Probability 022 0.43 0.35 Portfolio A Return - 1% 17% 23% Probability 0.05 0.28 0.35 0 32 Return 3% 8% 10% 17% a. The expected rate of return for portfolio A is %. (Round to two decimal places) The standard deviation of portfolio Ais%. (Round to two decimal places.) b. The expected rate of return for portfolio Bis 1% (Round to two decimal places ) The standard deviation for portfolio Bis % (Round to two decimal places) c. Based on the measured by the standard device and return as measured by the expected rate of retom of each stock which (Select the best choice below) OA Porto Ais better because the expected rate ofretum with more rok O Ports beter because it has a lower expected retum with less OC. Based on is one porte B is better became the ad based on retum alone portoo is beter becameras
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