In: Finance
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? |
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%