D. Using the table below, with information about the forecasted returns for Parrot Plc and Flamingo Plc, calculate the expected return and standard deviation of each company. As a risk averse investor, which company would you choose to invest in? Explain your answer. [17 marks]

Parrot Plc 40% 5% Outcome 1 Probability Return Outcome 2 Probability Return Flamingo Plc 35% 23% 65% 60% 30% 18%