Please keep in mind this is a multi-part question. Calculate the expected rate of return for each stock at each point. Lastly, which investment is better, based on the risk and return?

Thank you in adavance.

7

(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