(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the info

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Expected Rate Of Return And Risk Syntex Inc Is Considering An Investment In One Of Two Common Stocks Given The Info 1 (169.97 KiB) Viewed 23 times

(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Return 10% 0.15 □D 17% 0.35 21% 0.35 Probability 0.35 0.30 Common Stock B 0.35 Probability Return -7% 8% 13% 20% 0.15 (Click on the icon in order to copy its contents into a spreadsheet.) a. Given the information in the table, the expected rate of return for stock A is %. (Round to two decimal places.) The standard deviation of stock A is %. (Round to two decimal places.) b. The expected rate of return for stock B is %. (Round to two decimal places.) The standard deviation for stock B is %. (Round to two decimal places.) c. Based on the risk (as measured by the standard deviation) and return of each stock, which investment is better? (Select the best choice below.) O A. Stock A is better because it has a higher expected rate of return with less risk. B. Stock B is better because it has a lower expected rate of return with more risk.