Next Gen Corporation is considering investing in the security market. The company needs to choose only one of the two securities listed below. The returns are as follows:

Based on the above information, you are required to:

1. calculate the expected rate of return for each security.
2. calculate the standard deviation of return for each security.
3. explainthe most preferable security.

(10 marks)

ProbabilityReturnSecurityHSecurityL40%10%7%20%8%10%40%4%5%