You are comparing stock A to stock B. Given the following information, which one of these two stocks should you prefer and why? Calculate expected return and standard deviation for each stock, and base your choice on return/risk characteristics.

		Rate of Return if State Occurs
State of the Economy	Probability of State of the Economy
		Stock A	Stock B
Boom	60%	9%	15%
Recession	40%	4%	-6%