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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 standard deviation) and return?

Common Stock A             

Common Stock B             

Probability

Return

Probability

Return

0.35

10%

0.25

−7%


0.30

14%

0.25

5%


0.35

18%

0.25

15%




0.25

23%



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