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Economics

Q. Following investments strategies you are choosing:

i. invests $200 in stock A. Stock A costs $20 / share. Predictable yield / share of stock A is $2, as well as the variation of yield per share is 9 ($-squared).

ii. Invest $200 in stock B. Stock B costs $10 per share. Predictable yield / share of stock B is $.90, and the variation of yield per share is 1 ($-squared).

iii. Invest $100 in stock A and $100 in stock B. The relationship among yield per share of stock A and yield per share of stock B is .12.

a. Among which investment strategy has the highest expected yield?

b. Pretentious that yields for each stock are around generally distributed, with which investment strategy do you have the smallest chance of losing money?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9157418

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