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After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which

After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return as measured by the expected rate of return?

Portfolio A

Portfolio B

Probability

Return

Probability

Return

0.18

3%

0.08

6%

0.50

17%

0.28

8%

0.32

23%

0.42

10%

0.22

15%

a. The expected rate of return for portfolio A is ?

The standard deviation of portfolio A is?

b. The expected rate of return for portfolio B is?

The standard deviation for portfolio B is?

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