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calculate the standard deviation for stocks A and B Consider the following information: Rate of Return if State Occurs Probability of State State of Economy
calculate the standard deviation for stocks A and B
Consider the following information: Rate of Return if State Occurs Probability of State State of Economy of Economy Stock A Stock B Recession 15 .06 -.19 Normal .60 .09 .10 Boom .25 14 .27 a. Calculate the expected return for Stocks A and B. (Do not rourid 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.) 9.80 % a. Stock A expected return a. Stock B expected return 9.90 % b. Stock A standard deviation % % b. Stock B standard deviation Step by Step Solution
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