2. (Expected rate of return and risk) Summerville Inc. is considering an investment in one of two common stocks. Given the information in the popup window: 1, which investment is better, based on the risk (as measured by the standard deviation) and return of each? Tutors Online Tutoring | Chegg.com a. The expected rate of return for Stock A is %. (Round to two decimal places) The expected rate of return for Stock B is %. (Round to two decimal places) b. The standard deviation for Stock A is %. (Round to two decimal places) The standard deviation for Stock B is %. (Round to two decimal places) c. Based on the risk (as measured by the standard deviation) and return of each stock, which investment is better? (Select the best choice below.) A. Stock A is better because it has a higher expected rate of return with less risk. OB. Stock B is better because it has a lower expected rate of return with more risk. 1: Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) COMMON STOCK A PROBABILITY RETURN 0.25 11% 0.50 14% 0.25 COMMON STOCK B PROBABILITY RETURN 0.10 -6% 0.40 5% 16% 0.10 22% 18% 0.40 (Capital asset pricing model) Levine Manufacturing Inc. is considering several investments in the popup window: 1. The rate on Treasury bills is currently 6.5 percent, and the expected return for the market is 13.0 percent. What should be the required rate of return for each investment (using the CAPM)? a. Using the CAPM, the required rate of return for security A is %. (Round to two decimal places.) b. Using the CAPM, the required rate of return for security B is %. (Round to two decimal places.) c. Using the CAPM, the required rate of return for security C is %. (Round to two decimal places.) d. Using the CAPM, the required rate of return for security D is %. (Round to two decimal places.) 1: Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) SECURITY BETA 1.65 B 0.95 0.52 D 1.36