My class is called Quantitative analysis, so I believe it falls under Statistics. My question is: As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B.The table below shows information about the performance of stocks A and B last year. ReturnStandard DeviationStock A15 %8.3%Stock B14%2.1%As a financial advisor, are there factors other than return and risk that should be considered in making this decision?Based on these factors, what stock would you recommend to the client?What reasons will you convey to your client to justify your decision in recommending this stock?How will this recommendation impact the client?I just need help with part 4

Here, Return Standard Deviation Stock A 15 % 8.3% Stock B 14% 2.1% Here, the risk and…

Answered: As a financial advisor, you are…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter25: Portfolio Theory And Asset Pricing Models

Section: Chapter Questions

Problem 2MC

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My class is called Quantitative analysis, so I believe it falls under Statistics.

My question is:

As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B.

The table below shows information about the performance of stocks A and B last year.

	Return	Standard Deviation
Stock A	15 %	8.3%
Stock B	14%	2.1%

As a financial advisor, are there factors other than return and risk that should be considered in making this decision?
Based on these factors, what stock would you recommend to the client?
What reasons will you convey to your client to justify your decision in recommending this stock?
How will this recommendation impact the client?

I just need help with part 4

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