Synthex, 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?

Homework: Chapter 7&8 Homework Say Score: 1.2 of 2 pts 2 of 6 (6 complete) HW Score: 75.08%, 9.01 of 12 % P7-7 (similar to) Question Help (Expected rate of return and 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% 0.15 -0% 0.30 18% 0.35 7% 0.35 20% 0.35 13% 20% 0.15 a. Given the information in the table, the expected rate of return for stock Ais 15.3%. (Round to two decimal places) The standard deviation of stock Ais 4.21% (Round to two decimal aces.) . b. The expected rate of return for stock Bis 9.1% (Round to two decimal places) culat The standard deviation for stock Bis 67% (Round to two decimal places)