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Based on the following information, calculate the expected return, variance and standard deviation for two stocks: Scenario Probability Return Stock A Return Stock B Recession
Based on the following information, calculate the expected return, variance and standard deviation for two stocks:
Scenario | Probability | Return Stock A | Return Stock B |
Recession | 10% | 3.0% | -5.0% |
Normal | 70% | 5.5% | 8.0% |
Boom | 20% | 8.0% | 14.0% |
Fill in the values in the spreadsheet and list formulas for each please
Based on the following information, calculate the expected return, variance and standard deviation for two stocks:
Scenario | Probability | Return Stock A | Return Stock B |
Recession | 10% | 3.0% | -5.0% |
Normal | 70% | 5.5% | 8.0% |
Boom | 20% | 8.0% | 14.0% |
Fill in the values in the spreadsheet and list formulas for each please.
A 1 Input area: B C D E H F Output area: I J K Stock Adj. Ret. Prob. A B Ret. Dev. Squared Probability Return Ret. Dev. | Variance State Recession 5 Normal Stock A Recession Normal Boom Boom E(R) = L T Standard Deviation Adj. Ret. Ret. Dev. Squared Probability Return Ret. Dev. Variance Stock A Recession Normal Boom E(R) = Standard DeviationStep by Step Solution
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