Two assets A and B are currently being considered by Perth industries. The probability distributions of expected returns for these assets are shown in the following table:

Asset A

Asset B

Rate of return

Probability

Rate of return

Probability

40%

.10

40%

.10

10%

.20

20%

.20

0 %

.40

10%

.40

-5%

.20

0 %

.20

-10%

.10

-20%

.10

Calculate the expected value of return, for each of the two assets.

Calculate the standard deviation for each of the two assets, returns.

Which asset you will recommend to choose? why?