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Expected rate of return and risk. Syntex, inc is considering an investment in one of two...

Expected rate of return and risk. Syntex, inc is considering an investment in one of two common stocks. Given the information in the table, what is the expected rate of return for stock B? what is the standard deviation of stock B?what is the expected rate of return for stock a? based on the risk (as measured by the standard deviation) and return of each stock which investment is better? (round to 2 decimal places) Common stock A Common stock B Probability Return Probability Return 0.35 12% 0.25 -6% 0.30 17% 0.25 8% 0.35 18% 0.25 13% 0.25 20%

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Expert Solution

CV MEASURES THE RISK PER UNIT OF RETURN. SO LOWER THE CV, BETTER THE STOCK. THANK YOU

jeff jeffy answered 1 year ago
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