Given the following information, which investment is better, based upon the risk (as measured by the standard deviation) and return of each?

STOCK A1

Return Probability Expected Rate of Return Standard Deviation

11% 0.30 ?

15% 0.40 ?

19% 0.30 ? ?

STOCK B1

Return Probability Expected Rate of Return Standard Deviation

-05% 0.20 ?

06% 0.30 ?

14% 0.30 ?

22% 0.20 ? ?

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PART 2

The following are end of the month prices for both the Standard & Poors 500 Index and Nike's Common stock. Using the data here calculate the holding-period returns, the average monthly return and the standard deviation for both the S&P 500 and Nike. Use Microsoft Excel to construct your submission.

2011 NIKE S&P 500 INDEX

June $89.98 $1,320.64

July $90.15 $1,292.28

August $86.65 $1,218.89

September $85.51 $1,131.42

October $96.35 $1,253.30

November $96.18 $1,246.96

December $96.37 $1,257.60

2012 NIKE S&P 500 INDEX

January $103.99 $1,312.41

February $107.92 $1,365.68

March $108.44 $1,408.47

April $111.87 $1,397.91

May $108.18 $1,310.33

June $98.45 $1,335.69

Thanks.