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

Stock A	Return	Probability of the Return
	19	%	40	%
	12		45
	7		15

Stock B	Return	Probability of the Return
	30	%	10	%
	16		20
	8		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:

-Select-Stock AStock BItem 6 is riskier.

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

-Select-Stock AStock BItem 7 is preferred.