Measured by the standard deviation

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Reference no: EM13941528

ABC College is considering an investment in one of two common stocks to add to the employees' retirement portfolios. Given the following information, which investment is better, based upon the risk (as measured by the standard deviation) and return of each?

STOCK A1

Return Probability Expected Rate of Return Standard Deviation

11% 0.30 ?

15% 0.40 ?

19% 0.30 ? ?

STOCK B1

Return Probability Expected Rate of Return Standard Deviation

-05% 0.20 ?

06% 0.30 ?

14% 0.30 ?

22% 0.20 ? ?

Reference no: EM13941528

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