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Consider the following information: Economy Recession Probability of State of Economy Rate of Return if State Occurs Stock A Stock B .21 .015 -.36
Consider the following information: Economy Recession Probability of State of Economy Rate of Return if State Occurs Stock A Stock B .21 .015 -.36 Normal Boom .56 .23 .095 .26 .250 .49 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. a. Expected return of A Expected return of B % % b. Standard deviation of A % Standard deviation of B %
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