Stock A has a market value of $20, and Stock B has a market value of $30. During the year, Stock A generated cash flow of $3 and Stock B generated cash flow of $4. The current market values are as follows: Stock A is $22 and Stock B is $31.

a.What is the expected rate of return of the following stocks?

b.What is the expected rate of return using the most recent data?

c.If the investments are equally risky, which one should you pick?