Mathematics, 09.08.2019 21:30 musicaljay1276
Darren has the option of investing in either stock a or stock b. the probability of the return of stock a being 25% is 0.45, 14% is 0.25, and 4% is 0.30. the probability of the return of stock b being 30% is 0.30, 9% is 0.25, and 2% is 0.30. given the probability distributions for the two investments, what is the expected rate of return for stock a and stock b?
a. 13.65%; 12.85%
b. 17.82%; 11.95%
c. 15.95%; 11.85%
d. 16.80%; 11.45%
e. 14.75%; 13.75%
Answers: 1
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Darren has the option of investing in either stock a or stock b. the probability of the return of st...
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