Question: Consider the following 2 stocks A B Description Standard Deviation Expected Return CV B 20% 10% 2% 0,9 30% 15% 3.1% 1,4 a. Which stock

Consider the following 2 stocks A B Description Standard Deviation Expected

Consider the following 2 stocks A B Description Standard Deviation Expected Return CV B 20% 10% 2% 0,9 30% 15% 3.1% 1,4 a. Which stock is riskier for diversified investors? (2 pt) b. Calculate the required rate of return for each stock? (4 pts) c. On the basic of 2 stocks Expected and required rate of return which stock would be more attractive to diversified investors and why? (4 pts) Consider the following 2 stocks A B Description Standard Deviation Expected Return CV B 20% 10% 2% 0,9 30% 15% 3.1% 1,4 a. Which stock is riskier for diversified investors? (2 pt) b. Calculate the required rate of return for each stock? (4 pts) c. On the basic of 2 stocks Expected and required rate of return which stock would be more attractive to diversified investors and why? (4 pts)

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