Question: QUESTION 2 Consider the following information on two stocks (same data as Question #1): State of the Economy Probability of State of Economy Stock 1

QUESTION 2 Consider the following information on two stocks (same data as Question #1): State of the Economy Probability of State of Economy Stock 1 Rate of Return Boom Stock 2 Rate of Return - 28 09 48 35 .12 Normal 5 1.4 .53 Bust .15 What is the Coefficient of Variation of each stock? Based on this calculation which stock would you choose to buy

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