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Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks: State Of economy Probability
Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks:
State Of economy | Probability of state of economy | Rate of returns if state occurs | |
Stock A | Stock B | ||
Recession | .25 | .06 | -.20 |
Normal | .55 | .07 | .13 |
Boom | .20 | .11 | .33 |
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