Question: The spreadsheet has forecasts for the weekly change in stock prices over the next two years for two different stocks, based on your companys proprietary

The spreadsheet has forecasts for the weekly change in stock prices over the next two years for two different stocks, based on your companys 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.

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

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