Summerville Inc. is considering an investment in one of two common stocks. Given the information below

Common Stock A Common Stock B

Probability / Return Probability / Return

0.25 / 11% 0.10 / -4%

0.50 / 14% 0.40 / 5%

02.5 / 19% 0.40 / 15%

0.10 / 22%

which investment is better, based on the risk (as measured by the standard deviation) and return of each?

a. The expected rate of return for Stock A is 14.5%.

The expected rate of return for Stock B is 9.8%.

b. What is the standard deviation for Stock A ? (Round to two decimal places)

c. What is the standard deviation for stock B ? (Round to two decimal places)