Syntex is considering an investment in one of two stocks. Given the information that follows, which investment is better, based on the risk (the standard deviation) and return? Given the information in the table, what percent is the rate of return for Stock A?

Common Stock A

Probability Return

.2 10%

.6 16%

.6 21%

Common Stock B

Probability Return

.10 -7%

.4 5%

0.4 13%

0.10 20%