Katie's Portfolio ​ Katie Is Given the Following Information About the Returns

question 75

Essay

Katie's Portfolio
​ Katie is given the following information about the returns on two stocks: E(R₁)= 0.10,E(R₂)= 0.15,V(R₁)= 0.0225,and V(R₂)= 0.0441. ​ ​
-{Katie's Portfolio Narrative} If Katie is most interested in maximizing her returns,which stock should she choose?

---

Definitions:

High School Education

The primary and secondary schooling that comes after elementary school and concludes with graduation, typically encompassing grades 9 through 12.

Entry Level Position

A job that requires minimal prior experience or skills, often designed for new entrants to the workforce.

Accommodation Party

A person or entity that signs a negotiable instrument on behalf of another party to provide financial backing without direct benefit.

Direct Beneficiary

An individual or entity that is explicitly intended by the parties involved to benefit from a contract or agreement.