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You are considering two stocks and have determined the following information: Stock A Probability of the Return 27% 25% Return 11 35 in 5 40

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You are considering two stocks and have determined the following information: Stock A Probability of the Return 27% 25% Return 11 35 in 5 40 Stock B Return Probability of the Return 15% 34% 12 40 10 45 % 14.40 % a. Which of the two stocks has the higher expected return? Round your answers to two decimal places. The return on Stock A 12.60 The return on Stock B: Stock 8v has the higher expected return. b. 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: * * StockAV is riskier c. Given your answers to the two previous questions, what stock is preferred? Stock is preferred

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