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You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 21 % 50 % 12 10 5

You are considering two stocks and have determined the following information: Stock A Return Probability of the Return 21 % 50 % 12 10 5 40 Stock B Return Probability of the Return 32 % 10 % 15 60 8 30 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: % 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: is riskier.

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