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Summerville Inc. is considering an investment in one of two common stocks. Given the information in the popup window: LOADING... which investment is better, based
Summerville Inc. is considering an investment in one of two common stocks. Given the information in the popup window: LOADING... which investment is better, based on the risk (as measured by the standard deviation) and return of each?
COMMON STOCK A
PROBABILITY
0.30
0.40
0.30
RETURN
10%
15%
18%
COMMON STOCK B
PROBABILITY
0.10
0.40
0.40
0.10
RETURN
-5%
5%
16%
21%
The expected rate of return for Stock A is ____%. (Round to two decimal places)
The expected rate of return for Stock B is ____%. (Round to two decimal places)
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