Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows,
Fantastic news! We've Found the answer you've been seeking!
Question:
Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return?
Common Stock A | Common Stock B | |||
Probability | Return | Probability | Return | |
0.35 | 10% | 0.25 | −7% | |
0.30 | 14% | 0.25 | 5% | |
0.35 | 18% | 0.25 | 15% | |
0.25 | 23% |
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
Posted Date: