You are comparing stock A to stock B. Given the following information, which one of these two stocks should you prefer and why?

State of the Economy	Probability of the State of the Economy	Return on Stock A	Return on Stock B
Boom	70%	15%	9%
Bust	30%	-8%	6%

	A.	A; because it has highest possible return
	B.	B; because it has the same return as stock A and is less risky
	C.	A; because it has an expected return which is 0.3 percent higher than stock B
	D.	A; because it has an expected return of 8.4 percent
	E.	B; because it has a higher expected return than stock A