Calculate the mean and variance of the earnings per share, Financial Management

Calculate the mean and variance of the earnings per share

You have estimated the following probabilities for earnings per share of companies A and B

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a) Calculate the mean and variance of the earnings per share for each company.

b) Explain how some investors might choose A and others might choose B if preferences are based on mean and variance.

c) Compare A and B, using the second-order stochastic dominance criterion.

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Financial Management: Calculate the mean and variance of the earnings per share

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Financial Management: Calculate the mean and variance of the earnings per share

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