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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 A.
1. What is your expected return?
2. What is the standard deviation of possible returns?

Solutions

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 A= 18.69%

2. sd A= 55.027%

jeff jeffy answered 2 years ago
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