Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a. given the information in the table, the expecte

a. Given the information in the table, the expected rate of return for stock Ais...

90.2K

Verified Solution

Question

Finance

image

a. Given the information in the table, the expected rate of return for stock Ais 16.60%. (Round to two decimal places.) The standard deviation of stock A is 2.58%. (Round to two decimal places.) b. The expected rate of return for stock B is 10.00 %. (Round to two decimal places.) The standard deviation for stock B is 9.51 %. (Round to two decimal places.) C. Based on the risk (as measured by the standard deviation) and return of each stock, which investment is better? (Select the best choice below.) O A. Stock A is better because it has a higher expected rate of return with less risk. B. Stock B is better because it has a lower expected rate of return with more risk. (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.25 10% 0.25 - 6% 0.50 17% 0.25 7% 0.25 18% 0.25 13% 0.25 21% (Click on the icon in order to copy its contents into a spreadsheet.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000...

Advance Math
1.2K views

Describe a real-world prediction problem using urban data for which accuracy is paramount and interpretability may...

Mechanical Engineering
1.2K views

What are considerations to reduce the visual impacts of wind turbine installation?

General Management
1.2K views

When buying a good from a country member of the European Union, the VAT is payable...

Biology
1.2K views

Key Innovations in Animal EvolutionEarly biologists used morphology to study evolutionary trends in major animal...

Geometry
1.2K views

Area of a recta Find the area of the f Write your answer in Be...

Statistics
1.2K views

What is the probability of finding a score lower than a z score of 1...

Accounting
1.2K views

Whirly Corporation's contribution format income statement for the most recent month is shown...

Accounting
1.2K views

TDS Company uses a perpetual inventory system. It entered into the following purchase and sale...

Accounting
1.2K views

Discuss the use of the fair value option originally described in SFAS No. 159 now...

Accounting
1.2K views

Discuta dos razones principales por las que los anunciantes contratan agencias de publicidad de terceros...

Accounting
1.2K views

The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and...