Mr. Tasin is considering building an investment between two stocks, L and M. Stock. The

expected returns and probability over the next 6 years, 2014-2019, for each of these stocks are

shown in the following table.

Stock L Stock M

Year Expected

return

Probabilit

y

Expected

return

Probabilit

y

2014 14% 10% 20% 15%

2015 14 15 18 15

2016 16 25 16 20

2017 17 30 14 20

2018 17 10 12 10

2019 19 10 10 20

Requirement: Find out which one is risky investment.