UNIT 7-7 (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation)and return?Common Stock AProbability0.200.600.20Common Stock BReturnProbability13%0.1517%18%0.350.350.15Return- 7%5%15%20%(Click on the icon in order to copy its contents into a spreadsheet.)a. Given the information in the table, the expected rate of return for stock A is %. (Round to two decimal places.)The standard deviation of stock A is %. (Round to two decimal places.)b. The expected rate of return for stock B is %. (Round to two decimal places.)The standard deviation for stock B is %. (Round to two decimal places.)c. Based on the risk (as measured by the standard deviation) and return of each stock, which investment is better? (Select the best choice below.)O A. Stock A is better because it has a higher expected rate of return with less risk.OB. Stock B is better because it has a lower expected rate of return with more risk.

ConclusionGiven the calculations:Stock A is better because it has a higher expected rate of return…

Answered: (Expected rate of return and risk)…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Large speed bump $ $ $ S 1.80 16 2.10 1,920 U 480 U 400
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AutoSave OFF Home Insert X Paste E36 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 A Ready D 2 - C Draw Page Layout Calibri (Body) V 11 B I U A. V V B UDENCRUIVIIVIIL & FRITCITOU. CONSOLIDATED BALANCE SHEETS Formulas V fx (In millions, except par value amounts) ASSETS CURRENT ASSETS: Cash and Equivalents Marketable Securities Receivables Inventories Other Current Assets TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT, NET OTHER ASSETS TOTAL ASSETS CURRENT LIABILITIES: Accounts Payable Other Liabilities and Accrued Expenses Income Taxes Payable TOTAL CURRENT LIABILITIES NONCURRENT LIABILITIES: Long-Term Debt Other Liabilities TOTAL NONCURRENT LIABILITIES STOCKHOLDERS' EQUITY: Class A Common Stock, $0.01 par value: 150,000 shares authorized and 103,300 shares issued Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock, at Average Cost - 17,662 and 16,054 at December…
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Unit 1 question 16
ent Question 6 QUIZ CH 18-C X Project 6 x + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%252Fw... JIZ-CH 18 Saved CO 6 Fints eBook References Exercises 18-41 (Algo) Allocation of Central Costs; Profit Centers [LO 18-3] Woodland Hotels Incorporated operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows: Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms $ 12,100 5,700 4,700 600 3,700 80 1,210 50 570 Mc…

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