What stock would you recommend to the client

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Assignment

As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B.

The table below shows information about the performance of stocks A and B last year.

 

Return

Standard Deviation

Stock A

15 %

8.3%

Stock B

14%

2.1%

1. As a financial advisor, are there factors other than return and risk that should be considered in making this decision?
2. Based on these factors, what stock would you recommend to the client?
3. What reasons will you convey to your client to justify your decision in recommending this stock?
4. How will this recommendation impact the client?

Your analysis of the scenario must be submitted as a 1- to 2-page Microsoft Word document with double spacing and 12-point Times New Roman font references cited in APA format.

Reference no: EM131548717

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