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Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk
Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standarddeviation) and return?
Common Stock A | Common Stock B | |||
Probability | Return | Probability | Return | |
0.35 | 10% | 0.15 | 4% | |
0.30 | 14% | 0.35 | 8% | |
0.35 | 20% | 0.35 | 13% | |
0.15 | 21% |
- Given the information in the table, the expected rate of return for stock A is__%. Round to two decimals places.
- The standard deviation of stock A is __%. Round to two decimal places.
- The expected rate of return for stock B is __%. Round to two decimal places.
- The standard deviation for stock B is __%. Round to two decimal places.
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