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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 0.20 0.04

Consider the following information:

Rate of Return if State Occurs
State of Economy Probability of State of Economy Stock A Stock B
Recession 0.20 0.04 -0.20
Normal 0.60 0.09 0.17
Boom 0.20 0.16 0.35

Required:
(a)

Calculate the expected return for Stock A. (Do not round your intermediate calculations.)

(Click to select)9.40%9.19%11.12%11.37%8.53%

(b)

Calculate the expected return for Stock B. (Do not round your intermediate calculations.)

(Click to select)13.20%10.67%14.86%12.54%13.73%

(c)

Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)

(Click to select)3.83%2.71%4.02%3.63%3.98%

(d)

Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)

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