chp 8-07

You are considering two stocks and have determined the following information: a. Which of the two stocks has the higher expected return? Round your answers to two decimal places. The return on Stock A : % The return on Stock B: % has the higher expected return. b. Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation of Stock A: Standard deviation of Stock B: is riskier. c. Given your answers to the two previous questions, what stock is preferred? is preferred