Question: Please show ALL workings: Question 7 Consider your stocks with the following expected returns and standard deviations: Stock Expected Return Standard Deviation A 12 8

Please show ALL workings:

Please show ALL workings: Question 7 Consider your stocks with the following

Question 7 Consider your stocks with the following expected returns and standard deviations: Stock Expected Return Standard Deviation A 12 8 B 15% 13% 14% 16% C 7 D 11 Are any of these stocks preferred over another by a risk-averse investor? Question 8 NPV Project A Project B $180 $160 $120 $90 Crossover Point $0 NPVA 5% 8% 12% 15% 18% NPVA Required: Assume project A and project B are mutually exclusive projects. Which project would you choose? Discuss with references to the above chart

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