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Data Table OM (Click on the following icon in order to copy its contents into a spreadsheet) COMMON STOCK A PROBABILITY RETURN 0.30 12% 0.40

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Data Table OM (Click on the following icon in order to copy its contents into a spreadsheet) COMMON STOCK A PROBABILITY RETURN 0.30 12% 0.40 14% 0.30 20% COMMON STOCK B PROBABILITY RETURN 0.15 - 4% 0.35 6% 0.35 15% 0.15 21% Print Done 2 This Question: 9 pts 15 of 22 This Test: 107 Question (Expected rate of return and risk) Summerville Inc is considering an investment in one of two common stocks Given the information in the popup window which investments based on the risk (as measured by the standard deviation) and return of each? a. The expected rate of return for Stock Ass 1% (Round to two decimal places) The expected rate of return for Stock Bis 1% (Round to two decimal places b. The standard deviation for Stock Als 0% (Round to two decimal places) The standard deviation for Stock Bis 11%. (Round to two deomal places) Click to select your answer(s) (Expected rate of return and risk) Summerville Inc. is considering an investment in one of two common stocks Given the information in the popup Window based on the risk (as measured by the standard deviation) and return of each? The standard deviation for Stock Bis 1% (Round to two decimal places) c. Based on the risk (as measured by the standard deviation) and return of each stack, which investment is better? (Select the best choice below) A. Stock A is better because it has a higher expected rate of return with less nsk B. Stock B is better because it has a lower expected rate of return with more risk Click to select your answer(s)

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