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You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 17 % 10 % 11 10 10

You are considering two stocks and have determined the following information:

Stock A Return Probability of the Return
17 % 10 %
11 10
10 80
Stock B Return Probability of the Return
24 % 10 %
18 20
6 70

Which of the two stocks has the higher expected return? Round your answers to two decimal places.

The return on Stock A: %

The return on Stock B: %

-Select-Stock AStock BItem 3 has the higher expected return.

Which stock is riskier? Do not round intermediate calculations. Round your answers to two decimal places.

Standard deviation of Stock A:

Standard deviation of Stock B:

Given your answers to the two previous questions, what stock is preferred?

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