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3.(3 pts) The stocks of company X are sold at $5 per share. Stocks of company...

3.(3 pts) The stocks of company X are sold at $5 per share. Stocks of company Y are sold at $25 per share. According to a broker, 1 share of each company can either gain $1, with probability 0.5, or lose $1, with probability of 0.5, independently of the other company.Which of the following portfolios has the lowest risk:

a.50 stocks of A

b.25 stocks of A + 5 stocks of B

c.20 stocks of A + 6 stocks of B

Math   Statistics-And-Probability   
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