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1 Consider the following information: Rate of Return if State Occurs 10 points Stock A Stock B State of Probability of State of Economy Economy

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1 Consider the following information: Rate of Return if State Occurs 10 points Stock A Stock B State of Probability of State of Economy Economy Recession .10 Normal .60 Boom .30 eBook .04 .09 .17 - .17 .12 27 Hint Print References a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % % Stock A expected return Stock B expected return Stock A standard deviation Stock B standard deviation % %

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