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Question

Q9

(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks.

Stock A     Stock B

 

Prob  Return   Prob  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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