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