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Question Help ABC, Inc. is thinking about investing in one of the two common stocks given in the popup window: Answer the following questions. a.

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Question Help ABC, Inc. is thinking about investing in one of the two common stocks given in the popup window: Answer the following questions. a. The expected rate of return for Stock Ais [%. (Round to two decimal places) The expected rate of return for Stock B is %. (Round to two decimal places) b. The standard deviation for Stock A is %. (Round to two decimal places) The standard deviation for Stock B is %. (Round to two decimal places) c. Based on the standard deviation and the expected return of stocks A and B, which stock is a better investment? (Select the best choice below.) O A. Stock A is better because it has a higher expected rate of return with less risk. O B. Stock B is better because it has a lower expected rate of return with more risk. x Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) COMMON STOCKA PROBABILITY RETURN 0.30 12% 0.40 14% 0.30 19% COMMON STOCK B PROBABILITY RETURN 0.10 - 6% 0.40 7% 0.40 16% 0.10 22%

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