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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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