Question

​ 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?

Common Stock A		Common Stock B
Probability	Return	Probability	Return
0.35	12%	0.25	-4%
0.3	14%	0.25	5%
0.35	21%	0.25	15%
		0.25	20%

Given the information in the​ table, the expected rate of return for stock A is??

Answer 1

Calculations-

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