Suppose you have $100,000 to invest in the stock market. You have a choice between two stocks:
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Question:
Suppose you have $100,000 to invest in the stock market. You have a choice between two stocks: Stock A and Stock B.
Stock A is expected to return 8% annually, and Stock B is expected to return 12% annually.
You want to invest equal amounts in both stocks, and you want to keep the investments for 5 years.
What will be your expected return from each stock after 5 years, and what will be the total return from both stocks after 5 years?
Related Book For
Statistics For Business And Economics
ISBN: 9780321826237
12th Edition
Authors: James T. McClave, P. George Benson, Terry T Sincich
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