Problem 3: Given six years of percentage return of Stock A and Stock B, identify the expected return, and risk of each instrument. Assume that each year, has equal chances of reoccurrence. Stock A Stock B 20X1 10 20 20X2 -15 -20 20X3 20 -10 20X4 25 30 20X5 -30 -20 20X6 20 60  a.     Which of the two stocks is riskier? Why? b.     Which of the stocks is expected to yield a higher return? Why? c.     Where will you invest?

Q: Given six years of percentage return of Stock A and Stock B, identify the expected return, and risk…

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