Question: You are considering purchasing two stocks with the following possible returns and probabilities of occurrence: Investment A Return Probability of Occurence -10% 20% 5 40

You are considering purchasing two stocks with the following possible returns and probabilities of occurrence:

Investment A Return Probability of Occurence
-10% 20%
5 40
15 30
25 10
Investment B Return Probability of Occurence
-5% 20%
5 40
7 30
39 10

Which investment has a higher expected return [ Select ] ["Investment B", "Not enough information", "Equal expected returns", "Investment A"] ? Which investment has a higher risk according to standard deviation [ Select ] ["Same risk", "Not enough information", "Investment A", "Investment B"] ? I recommend you use a spreadsheet to answer this question. Which investment is more efficient [ Select ] ["Investment B", "Investment A", "Not enough information", "Equally efficient"] (higher return/risk ratio)?

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