Question Stocks A, B, and C have expected returns of 12 percent, 12 percent, and 10 percent, respectively, while their standard deviations are 42 percent, 30 percent, and 30 percent, respectively. If you were considering the purchase of each of these stocks as the only holding in your portfolio and the risk-free rate is 0 percent, which stock should you choose? (Round answers to 2 decimal places, e.g. 15.25.) Coefficient of variation of Stock A( ) Coefficient of variation of Stock B( ) Coefficient of variation of Stock C( )
Question
Stocks A, B, and C have expected returns of 12 percent, 12 percent, and 10
percent, respectively, while their standard deviations are 42 percent, 30 percent, and 30 percent, respectively. If you were considering the purchase of each of these stocks as the only holding in your portfolio and the risk-free rate is 0 percent, which stock should you choose? (Round answers to 2 decimal places, e.g. 15.25.)
Coefficient of variation of Stock A( )
Coefficient of variation of Stock B( )
Coefficient of variation of Stock C( )
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