Question
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .15 .04
-
Consider the following information:
|
| Rate of Return if State Occurs | ||||||||
| State of Economy | Probability of State of Economy | Stock A | Stock B | ||||||
| Recession |
| .15 |
|
| .04 |
|
| .17 |
|
| Normal |
| .55 |
|
| .09 |
|
| .12 |
|
| Boom |
| .30 |
|
| .17 |
|
| .27 |
|
|
| |||||||||
-
Calculate the expected return for each stock.
-
Calculate the standard deviation for each stock.
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Small Fund Management
Authors: K. K.
1st Edition
979-8866391837
