Which stock is riskier

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Reference no: EM133058343

You are considering two stocks and have determined the following information:

Stock A

Return

Probability of the Return

 

19

%

40

%

 

12

 

45

 

 

7

 

15

 

Stock B

Return

Probability of the Return

 

30

%

10

%

 

16

 

20

 

 

8

 

70

 

Which of the two stocks has the higher expected return? Round your answers to two decimal places.

The return on Stock A:   %

The return on Stock B:   %

-Select-Stock A Stock BItem 3 has the higher expected return.

Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places.

Standard deviation of Stock A: 

Standard deviation of Stock B: 

-Select-Stock AStock BItem 6 is riskier.

Given your answers to the two previous questions, what stock is preferred?

-Select-Stock AStock BItem 7 is preferred.

Reference no: EM133058343

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