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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 0.05
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 | 0.05 | -0.22 |
Normal | 0.50 | 0.09 | 0.16 |
Boom | 0.30 | 0.15 | 0.33 |
(c) | Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) |
A) 3.61% B) 2.55% C) 3.79% D) 3.43% E) 3.75% |
(d) | Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) |
A) 19.22% B) 13.59% C) 21.18% D) 18.26% E) 19.98% |
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