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Syntex Inc. is considering an investment in one of two common stocks. Given the information that follows, which is better based in the risk (as
Syntex Inc. is considering an investment in one of two common stocks. Given the information that follows, which is better based in the risk (as measured by the standard deviation) and return?
Common Stock
prob. Return
.25 13%
.50 14%
.25 20%
Common Stock B
prob. return
.15 -4%
.35 8%
.35 13%
.15 21%
a. Given the information in the table, the expected rate of return for stock A is % ( Round to two decimals places)
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