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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stack B Recession .20
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stack B Recession .20 .05 -18 Normal 55 .08 11 Boom 25 13 28 a. Calculate the expected return for Stocks A and B. (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 Stocks A and B. (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 a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation 8.65 % 9.45 % % %
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