Considering an investment in one of two stocks

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Syntex is considering an investment in one of two stocks. Given the information that follows, which investment is better, based on the risk (the standard deviation) and return?

COMMON STOCK A                                                           COMMON STOCK B

Probability               Return                                             Probability                Return

0.20                            10%                                                  0.10                          -7%

0.60                             16%                                                 0.40                           5%

0.20                            21%                                                   0.40                         13%

                                                                                             0.10                          20%

Reference no: EM131323041

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