Based on the following information regarding Stock A and Stock B, answer the following questions: a) Calculate the expected return and standard deviation for each asset. Show excel formulas. b) In which stock would you prefer to invest? Include a few sentences explaining your preference, commenting on both the risk and return of the assets.

Economy Probabilty Stock A Stock B Recession 15% 2.30% -19.30% Slow 25% 5.70% -5.71% Normal 55% 12.70% 13.70% Boom 5% 14.30% 34.89%