This problem involves a limit and the greatest integer function. My current guess is B. 1/3.5. I plugged 3.5 in for x. My numera
tor became 1.5, but I rounded down to 1 because it is the greatest integer function and ended up with 2/7 or 1/3.5
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Answer:
Both the stock have the same expected return.
Step-by-step explanation:
In year 1 the return earned by stocks A and B are:
Stock A = 2% return
Stock B = 9% return
In year 2 the return earned by stocks A and B are:
Stock A = 18% return
Stock B = 11% return
Compute the expected return for stock A as follows:
Compute the expected return for stock B as follows:
Thus, both the stock have the same expected return.