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Consider the following information: Rate of Return If State Occurs Stock A Stock B Probability of State of State of Economy Economy Recession .17 Normal
Consider the following information: Rate of Return If State Occurs Stock A Stock B Probability of State of State of Economy Economy Recession .17 Normal .58 Boom .25 .08 .11 .16 -.12 .17 .34 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.g., 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.g., 32.16.) a. Stock A expected return Stock B expected return Stock A standard deviation % % b. Stock B standard deviation %
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