Annual results for two stocks

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Explain why the following annual results for two stocks would be very unlikely to occur.  If these were predicted figures for the coming year and you were asked to predict a more appropriate standard deviation for Stock A based on an assumption of constant risk-return ratio, what figure would you predict?

Stock Mean Stdeva

A   4.40%  5.10%

B   7.20%  3.60%

Reference no: EM131823516

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