COMMON STOCK A		COMMON STOCK B
PROBABILITY	RETURN	PROBABILITY	RETURN
0.3	11%	0.2	-5%
0.4	15%	0.3	6%
0.3	19%	0.3	14%
		0.2	22%

Summerville Inc. is considering an investment in one of two common stocks. Given the information above, which investment is better, based on the risk (as measured by the standard deviation) and return of each?

a. The expected rate of return for Stock A is ___%

The expected rate of return for Stock B is ___%

b. The standard deviation for Stock A is ___%

The standard deviation for Stock B is ___%

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.)

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.