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? COMMON STOCK A COMMON STOCK B

Probability Return Probability Return

0.20 10% 0.10 -7%

0.60 16% 0.40 5%

0.20 21% 0.40 13%

0.10 20%