Question: Stock A Stock B Week # Weekly change (%) # Weeks Weekly change (%) 1 1.8 26 -4 2 28.5 13 0 3 7.8 26

Stock A Stock B
Week # Weekly change (%) # Weeks Weekly change (%)
1 1.8 26 -4
2 28.5 13 0
3 7.8 26 4
4 2.3 39 12
5 -0.7
6 7.2
7 32.2
8 7.4
9 10.2
10 10.5
11 0.3
12 8.1
13 2
14 10.8
15 1.9
16 -1.5
17 -0.3
18 5.5
19 4.8
20 2.3
21 17.3
22 68.6
23 3
24 7.1
25 1.4
26 4.6
27 -3.3
28 -0.5
29 22.3
30 6.2
31 -2
32 19.6
33 3
34 19.2
35 7
36 5.4
37 2.8
38 8.5
39 -1.9
40 2.8
41 2
42 2.9
43 4.9
44 2.6
45 8.8
46 -0.1
47 -3.5
48 -2.3
49 3.5
50 2.8
51 0.3
52 15.3
53 3.8
54 9.5
55 -0.9
56 3.8
57 3
58 3.9
59 5.9
60 3.6
61 9.8
62 0.9
63 -2.5
64 5
65 7.8
66 8.1
67 -2.1
68 5.7
69 -0.4
70 8.4
71 -0.5
72 -3.9
73 -2.7
74 3.1
75 2.4
76 -0.1
77 19.8
78 3.2
79 19.4
80 7.2
81 5.6
82 3
83 8.7
84 -1.7
85 3
86 2.2
87 3.1
88 5.1
89 2.8
90 9
91 2.1
92 3
93 5
94 2.7
95 8.9
96 0
97 -3.4
98 -2.2
99 -0.2
100 -1
101 -0.1
102 1.9
103 -0.4
104 5.8

 Stock A Stock B Week # Weekly change (%) # Weeks

Question 1 (15 points): The "Question 1" tab in the Excel spreadsheet has forecasts for the weekly change in stock prices over the next two years for two different stocks, based on your company's proprietary software. Stock A is based on a continuous random variable and Stock B is based on a discrete random variable. You are an investment advisor and your job is to provide advice for your client about whether they should buy Stock A or Stock B, assuming that they can only buy one or the other and they want to understand the risks involved with their investment. What is your recommendation? Provide numerical support for your recommendation. Question 1 (15 points): The "Question 1" tab in the Excel spreadsheet has forecasts for the weekly change in stock prices over the next two years for two different stocks, based on your company's proprietary software. Stock A is based on a continuous random variable and Stock B is based on a discrete random variable. You are an investment advisor and your job is to provide advice for your client about whether they should buy Stock A or Stock B, assuming that they can only buy one or the other and they want to understand the risks involved with their investment. What is your recommendation? Provide numerical support for your recommendation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!