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In: Finance

You wish to invest and the options are as follows: Stock A Potential price 10.35 Current...

You wish to invest and the options are as follows:
Stock A
Potential price 10.35
Current Price 5.35 Potential price 5.35
Potential price 3.35
Stock B
Potential price 3.35
Current Price 5.35 Potential price 5.35
Potential price 10.35
Suppose you buy 2 shares of Stock B.
1. What is your expected return?
2. What is the standard deviation of possible returns?

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Expert Solution

ANSWER IN THE IMAGE ((YELLOW HIGHLIGHTED). FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE. THUMBS UP PLEASE.

1. expected return of stock B= 18.69%

2. sd B= 55.027%

jeff jeffy answered 2 years ago
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