)Mr. John is considering investing in one of the following options, Stock A or Stock B. Compute Expected Rate of Return and the Risk from the given data and advise Mr. A which company he should opt for the investment.

Common stock A

Probability Returns

.30 11.0%

.40 15.0%

.30 19.0%

Common Stock B

Probability Return

.20 -5.0%

.30 6.0%

.30 14.0%

.20 22.0%