b. Use the HPRs and expected return calculated in question a to find the standard deviation of the HPRs for each stock over the 10-year period. c. Use your findings to evaluate and discuss the return and risk associated with stocks X and Y. Which stock seems preferable? Explain. d. Ignoring her existing portfolio, what recommendations would you give Molly with regard to stocks X and Y?
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FIN 402 Week 2 Assignment Case Problem 5.2 Susan Lussier’s Inherited Portfolio Does It Meet Her Needs
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Case Problem 5.2 Susan Lussier’s Inherited Portfolio: Does It Meet Her Needs? Susan Lussier is 35 years old and employed as a tax accountant for a major oil and gas exploration company. She earns nearly $135,000 a year from her salary and from participation in the company’s drilling activities. An expert on oil and gas taxation, she is not worried about job security—she is content with her income and finds it adequate to allow her to buy and do whatever she wishes. Her current philosophy