Question
25 Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy a. Stock A expected return a. Stock B
25 Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy a. Stock A expected return a. Stock B expected return i b. Stock A standard deviation b. Stock B standard deviation 15 55 30 Rate of Return if State Occurs Stock B -17 12 27 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 04 .09 17 % %
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
10th edition
978-1260013955, 78034639, 978-0078034633
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