(a) Stock A: 3% return with probability 0.8, 2% loss with probability 0.2b) Stock B: 5%...

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(a) Stock A: 3% return with probability 0.8, 2% loss with probability 0.2b) Stock B: 5%...

(a) Stock A: 3% return with probability 0.8, 2% loss with probability 0.2b) Stock B: 5% return with probability 0.6, 2% loss with probability 0.4

Let XA and XB be the return on stock A and B respectively. Compute the expected values and variances of XA and XB. Which investment seems safer？

math Statistics-And-Probability

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(a) Stock A: 3% return with probability 0.8, 2% loss with probability 0.2b) Stock B: 5%...