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(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:
(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 investment is better, based on the risk (as measured by the standard deviation) and return of each? a. The expected rate of return for Stock A is 14.50%. (Round to two decimal places) The expected rate of return for Stock B is 9.80 %. (Round to two decimal places) %. (Round to two decimal places) b. The standard deviation for Stock A is Data table (Click on the following icon in order to copy its contents into a spreadsheet.) COMMON STOCK A PROBABILITY 0.25 0.50 0.25 RETURN 10% 15% 18% Print COMMON STOCK B PROBABILITY 0.10 0.40 0.40 0.10 Done RETURN - 4% 5% 15% 22% X C
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