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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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