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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .20 .08
Consider the following information:
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | .20 | .08 | .15 | ||||||
Normal | .50 | .11 | .14 | ||||||
Boom | .30 | .16 | .31 |
Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Expected return | |
Stock A | 11.9% |
Stock B | 13.3% |
Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Standard deviation | |
Stock A | ??% |
Stock B | ??% |
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