Question
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .35 .06
Consider the following information:
| Rate of Return if State Occurs | |||||||||||
| State of Economy | Probability of State of Economy | Stock A | Stock B | ||||||||
| Recession | .35 | .06 | .15 | ||||||||
| Normal | .40 | .09 | .16 | ||||||||
| Boom | .25 | .13 | .36 | ||||||||
a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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The Little Book Of Common Sense Investing The Only Way To Guarantee Your Fair Share Of Stock Market Returns
Authors: John C. Bogle
1st Edition
1119404509, 978-1119404507
