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explain answers 5. (C8) Based on the graph's information, which of the...

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Accounting

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5. (C8) Based on the graph's information, which of the following statements is true? A. Company A has lower risk. B. Company B has lower risk. PROBABILITY DENSITY Company A Company B -40 -20 20 40 60 RATE OF RETURN Percent 6. (C8) Stock X has a chance of 20% to earn a return of 15%, a chance of 50% to earn a return of 8%, and a chance of 30% to earn a return of -10%. What's the expected return of Stock X? 7. (C8) Stock X has a chance of 25% to earn a return of 10%, a chance of 40% to earn a return of 6%, and a chance of 35% to earn a return of -8%. What's the expected return of Stock X? 8. (C8) Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: 2

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