Question
Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 25% Normal 30% 15% -5% Slow 40% -5% 5% Bust
Consider the following information on two stocks:
| P(State) | Stock A | Stock B | |
| Boom | 20% | 30% | 25% |
| Normal | 30% | 15% | -5% |
| Slow | 40% | -5% | 5% |
| Bust | 10% | -12% | 0% |
Calculate the expected return for stock A. (Enter percentages as decimals and round to 4 decimals)
Calculate the expected return for stock B. (Enter percentages as decimals and round to 4 decimals)
Calculate the variance of stock A. (Enter percentages as decimals and round to 4 decimals)
Calculate the standard deviation of stock B. (Enter percentages as decimals and round to 4 decimals)
Calculate the covariance(A,B). (Enter percentages as decimals and round to 4 decimals)
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Property Finance
Authors: David Isaac
2nd Edition
0333987144, 978-0333987148
