Expected rate of return and risks Syntex Inca considering an investment in one of two common stocks Given the information that fotows, which investment is better based on the risk as mensured by the standard deviation and retur? Common Stock A Common Stock Probability Return Probability Return 0.30 115 0.20 0.40 15% 0.30 6% 0.30 19% 0.30 SON 0.20 225 Cocon Dordre contacto Given the information in the table. The expected rate of retum borok Around to wo decimal places) Tiw standard deviation of stockACK (Round to turn decimal places) b. The expected site of tum for stocks (Round to two decimal places) The standard deviation for stok Round a two decimal places) 6. Based on the risk tas nessured by the standard deviation and return of each slock, which investment is betur? (Select the best choice below) O A Shock Als better because has a higher expected rate of retum in less risk Stock Bis beter because that a lower expected rate of retuwmore Huk c Pated to Checkpoint.) Expected rate of return James Fromholtz is considering whether to invest in a newly formed investment fund. The Fund's investiment objective is to our home mortgage securities at what tropes will be hargain prom. The fund sponsor has opted to Jones that the fund's performance withings on how the national sconomy perform in the coming ye. Secally, he speed the following posible outcomes lased on these potential outcomes, what is your estimate of the expected rate of retum from this Investment opportunity 6. Would you be interested in making such an inent? Note that you to all your money in ore you a sconomycotes to the worst te or you double your money the economy enters into a rapid expansion . The expected rate of rotun from the investment opportunity found to be decimal places) . Would you be interested in making such an investment in a best choice below) On Your interest in making such an investment would depend on your riskeraren you do not the risk you should wood veemant over you do not indisk you may want to make the rivestment O No, I would not be interested in making such an invent. The scorony la mol likely to un into a depression OCY, I would be morated in making such an awesort The economy is mostly to begin a rapid expansion and recovery