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Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B Recession .22 .020

Consider the following information:

Rate of Return if State Occurs
State of Probability of State
Economy of Economy Stock A Stock B
Recession .22 .020 .37
Normal .57 .100 .27
Boom .21 .260 .50

Requirement 1:

Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return
E(RA) %
E(RB) %

Requirement 2:

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Standard deviation
A %
B %

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