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Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .15 .50 .35 Stock
Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .15 .50 .35 Stock A .02 10 .15 Stock B -30 .18 .31 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. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation % % : % %
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