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Consider the following information: Economy Recession Normal Boom Probability of Rate of Return if State Occurs State of Economy Stock A Stock B 23 025
Consider the following information: Economy Recession Normal Boom Probability of Rate of Return if State Occurs State of Economy Stock A Stock B 23 025 - 38 .105 28 19 .270 .51 .58 a. Calculate the expected return for the two stocks. (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 the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return of A Expected return of B Standard deviation of A Standard deviation of B 11.80% 17. 19% 12.62
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