Calculate the mean and variance of the earnings per share

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Reference no: EM131245385

You have estimated the following probabilities for earnings per share of companies A and B

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a) Calculate the mean and variance of the earnings per share for each company.

b) Explain how some investors might choose A and others might choose B if preferences are based on mean and variance.

c) Compare A and B, using the second-order stochastic dominance criterion.

Reference no: EM131245385

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