FINZ20 SEM 181 2 Summerville Inc. is considering an investment in one of the two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return of each? Your answer should be based on "RISK AVERSE attitude of the investors. Common Stock A Common Stock B 0.30 0.40 0.30 Return 11% 15% 19% 0.20 0.30 0.30 0.20 Return .5% 6% 14% 22% 3. The following stocks are available for investment Common Stock BETA Business 1.40 0.80 Yunnan Garden Bird Nest Wacho.com (WACHO Park City Cola Oldies Records, Ltd. URP) 0.60 1.80 1.05 0.90 If you invest 20% of your funds in each of the first four securities, and 10% in each ofthe last two, what is the beta for your portfolio? a) If the risk-free is 8% and the expected return on the market portfolio is 14%, what wil be the portfolio's expected return? b)