You are comparing stock A to stock B. Given the following information, which one of these two stocks should you prefer and why? Rate of Return if State of State Occurs Probability of State of Economy Stock A Stock Economy B Boom 60% 9% 15% Recession 40% 4% -6% Stock B; because it has a higher expected return and appears to be just slightly more risky than stock A Stock A; because it has a slightly lower expected return but appears to be significantly less risky than stock B Stock A; because it has a higher expected return and appears to be less risky than stock B Stock A; because it has an expected return of 7% and appears to be more risky Stock B; because it has a higher expected return and appears to be less risky than stock A