You are given the probability distribution of the returns of 2 stocks A and B. You are asked to calculate: 1) The expected return of each stock 2) The standard Deviation of the return of each stock 3) the coefficient of variation of each stock. Probability RA RB 0.2 30% -50% 0.5 10% 20% 0.3 -20% 35% 4) which stock will you recommend? SD(RA) SD(RB) 0.317 0.183 Buy B because it has a lower CV E(RA) E(RB) 0.25 0.185 Buy A because it has a higher CV