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(Expected rate of return and ) Summerville Inc. is considering an investment in one of two common stocks. Given the information in the popup window

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(Expected rate of return and ) 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 (os measured by the standard deviation) and return of each a. The expected rate of retur for Stock Ais % (Round to two decimal places) The expected rate of retum for Stock Bis % (Round to two decimal places) b. The standard deviation for Stock Ais (%. (Round to two decimal places) The standard deviation for Stock B. ]% (Round to two decimal place) e. Based on them (as measured by the sandard deviation) and rolum fechock, which investment is better? (Select the best choice below) O A. Stock A is better because it has a higher expected rate of return with loss risk OB. Stock 8 better because it has a lower expected rate of return with more risk. (Expected rate of return and risk) Summerville Inc. is considering an investment in one of two common stocks. Giv measured by the standard deviation) and return of each? a. The expected rate of return for Stock A is I %. (Round to two decimal places) The expected rate of return for Stock B is %. (Round to two decimal places) b. The standard deviation for Stock Ais (%. (Round to two decimal places) The standard deviation for Stock B is %. (Round to two decimal places) c. Based on the risk (as measured by the standard deviation) and return of each stock, which investment is better? O A. Stock A is better because it has a higher expected rate of return with less risk. OB. Stock B is better because it has a lower expected rate of return with more risk. i Data Table COMMON STOCKA COMMON STOCKB PROBABILITY RETURN PROBABILITY RETURN 0.30 12% 0.10 - 6% 0.40 16% 0.40 6% 0.30 18% 0.40 14% 0.10 20% (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.)

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