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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 %. (Round to two decimal places) The expected rate of return for Stock B is 10.1 %. (Round to two decimal places) b. The standard deviation for Stock A is %. (Round to two decimal places) (Click on the following icon in order to copy its contents into a spreadsheet.) COMMON STOCKA RETURN PROBABILITY 0.20 0.60 0.20 10% 14% 18% COMMON STOCK B PROBABILITY RETURN 0.20 - 4% 0.30 7% 0.30 16% 0.20 20% Print Done
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