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Chapter 11 QB2. 2. Standard Deviations (LO1, CFA2) Using the information in the previous question, calculate the standard deviation of returns. 1. Expected Returns (LO1,

Chapter 11 QB2.

2. Standard Deviations (LO1, CFA2) Using the information in the previous question, calculate the standard deviation of returns.

1. Expected Returns (LO1, CFA1) Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone:

State Of

Economy

Probability of

State of Economy

Security Return

If State Occurs

Recession

0.25

-8%

Normal

0.50

13

Boom

0.25

23

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