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Consider the following Information: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .20
Consider the following Information: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock 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.) Answer is not complete. 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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