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Consider the following information: Economy Recession Normal Boom Probability of State of Economy .22 .62 .16 Rate of Return if State Occurs Stock A Stock
Consider the following information: Economy Recession Normal Boom Probability of State of Economy .22 .62 .16 Rate of Return if State Occurs Stock A Stock B a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B .045 .125 .310 a. Calculate the expected return for the two stocks. Note: 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. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % % % -.42 .32 .55 %
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