Josh, a chartered financial analyst (CFA), is willing to invest in the Alternative Investments Market (AIM) in
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Question:
Josh, a chartered financial analyst (CFA), is willing to invest in the Alternative Investments Market (AIM) in the United Kingdom. He collected the information on two different companies (provided below) from the London Stock Exchange.
Argos | Sun Medical | |||
Probability | Return (%) | Probability | Return (%) | |
Recession | 30% | -2 | 30% | -4 |
Normal | 30% | 12 | 40% | 8 |
Boom | 40% | 15 | 30% | 16 |
Calculate the expected return and the standard deviation for each stock
Given the results obtained, which stock would you advise Josh invest in?
Related Book For
Elementary Linear Algebra with Applications
ISBN: 978-0471669593
9th edition
Authors: Howard Anton, Chris Rorres
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