2. Consider two available stocks: A and B. Suppose that the rates of return on both stocks, RA and Re, are random variables with the following probability distribution functions: P(RA = x) = 4; for x = -1, 0, 1, 2 P(RB = x) = (x + 5)/36; for x = -4, -3, -2, -1, 0, 1, 2, 3 a. Calculate the expected value of both rates of return. b. Calculate the standard deviation of both rates of return. Hint: By definition, var(X) = E(X-) - (E(X)) = E[ (X - E(X))-]. c. Which stock has a higher stand-alone risk? Explain. d. Which stock (if either) is a better investment? Explain