Question: Common Stock B Common Stock A Probability Return 0.30 11% 0.40 15% 0.30 19% Probability 0.20 0.30 0.30 0.20 Return - 5% 6% 14% 22%

 Common Stock B Common Stock A Probability Return 0.30 11% 0.40

Common Stock B Common Stock A Probability Return 0.30 11% 0.40 15% 0.30 19% Probability 0.20 0.30 0.30 0.20 Return - 5% 6% 14% 22% www. ** AMIVU MIU MIU 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 As = Quiz: Assignment Chapter 7,8 a Common Stock B Common Stock A Probability Return 0.30 11% 0.40 15% 0.30 19% Probability 0.20 0.30 0.30 0.20 Return - 5% 6% 14% 22% a. Given the information in the table, the expected rate of return for stock Ais %. (Roundt The standard deviation of stock Ais l%. (Round to two decimal places.) b. The expected rate of return for stock B is %. (Round to two decimal places.)

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