Stock A Stock B Probability Return Probability Return .30 12% .20 15% .40 16% .30 6% .30 18% .30 13% .20 21% A. Fair, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return? B 'Understanding the relationship between risk and return and how it's affected by time is probably one of the most important aspects of investment' - Discuss. i. Different types of risk ii. Diversification reduces risk iii. Common measures of risk