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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

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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 - 28 .105 .18 .19 170 41 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.) a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B 98 Consider the following information: Rate of Return if State Occurs Economy Recession Normal Boom Probability of State of Economy .23 .58 19 Stock A .025 105 .170 Stock B - 28 .18 41 a. Calculate the expected return for the two stocks. (Do calculations and enter your answers as a percent rounded 32.16.) b. Calculate the standard deviation for the two stocks. (Do not calculations and enter your answers as a percent rounded 1 32.16.) a. % de Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B % 96 TUDY TIULITOLIUNT. Rate of Return if State Occurs Economy Recession Normal Boom Probability of State of Economy 23 .58 .19 Stock A 025 105 170 Stock B 28 18 41 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.) % % a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B 980 90

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