Player Syntex, Inc. is considering an investment in one of two common stocks.
The file is attached with my question. Player 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 | Copy to Clipboard+Open in Excel+ | ||
| Probability | Return | Probability | Return | |
| 0.350.35 | 1010% | 0.250.25 | negative 4−4% | |
| 0.300.30 | 1414% | 0.250.25 | 77% | |
| 0.350.35 | 2020% | 0.250.25 | 1313% | |
| 0.250.25 | 2121% |