Question: Consider the total returns between Southeast Utilities and Precision Instruments for the different market trends. The summary statistics for these two stocks are as follows:

Consider the total returns between Southeast Utilities and Precision Instruments for the different market trends. The summary statistics for these two stocks are as follows:

POSSIBLE

OUTCOMES

PROBABILITY

RETURNS

SOUTHEAST

PRECISION

Bullish Trend

0.25

13%

16%

Normal Trend

0.50

5%

11%

Recession

0.25

(7)%

13%

Calculate the risk for both the companys stock and comment which is better and less risky?

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