Question: solve this problem Explain your answer with the help of characteristic mine. 3. suppose you are working in a mutual fund and have been assigned

solve this problem Explain your answer with the help of characteristic mine.solve this problem

Explain your answer with the help of characteristic mine. 3. suppose you are working in a mutual fund and have been assigned a task to evaluate the stocks of two companies A and B the possible returns and probabilities are listed below, you need to decide if it's a good decision to invest in one company or a portfolio (5 marks) Returns Returns Probability (p) Stock A(%) Stock B (%) 0.2 -5 10 0.6 20 15 0.2 40 20 Required: a. Compute the expected return and standard deviation and for each stock along with a two stock portfolio with 50% investment in each. If you are risk averse then which stock you would prefer to buy and why

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