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b Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Recession Normal Boom .17 .58 .25

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Consider the following information: Rate of Return if State Occurs Probability of State of Economy State of Economy Recession Normal Boom .17 .58 .25 Stock A .08 .11 .16 Stock B -.12 .17 .34 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.) a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation de de % % % %

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