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(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment
(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.20 10% 0.10 -7% 0.60 16% 0.40 7% 0.20 18% 0.40 13% 0.10 21% (Click on the icon in order to copy its contents into a spreadsheet.) a. Given the information in the table, the expected rate of return for stock Ais %. (Round to two decimal places.) The standard deviation of stock A is %. (Round to two decimal places.) b. The expected rate of return for stock B is %. (Round to two decimal places.) The standard deviation for stock B is %. (Round to two decimal places.) Click to select your answer(s)
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