. (Calculating rates of return) The common stock of Maco Enterprises had a market price of $12 on the day you purchased it just one year ago. During the past year the stock had paid a $1 dividend and closed at a price of $14. What rate of return did you earn on your investment in Maco's stock?2. (Expected rate of return and risk) Almay, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return?

Common Stock A

Common Stock B

Probability

Return

Probability

Return

0.3

11%

0.2

25%

0.4

15%

0.3

6%

0.3

19%

0.3

14%

0.2

22%