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Consider the following information: Rate of Return If State Occurs Probability of State of State of Stock A Stock B Economy Economy Recession 16
Consider the following information: Rate of Return If State Occurs Probability of State of State of Stock A Stock B Economy Economy Recession 16 .05 -.16 Normal .62 .08 13 Boom 22 13 30 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.c 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. 32.16.) a. Stock A expected return % Stock B expected return % b. Stock A standard deviation % Stock B standard deviation %
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