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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.18 0.09
Consider the following information: |
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | 0.18 | 0.09 | 0.13 | ||||||
Normal | 0.59 | 0.12 | 0.16 | ||||||
Boom | 0.23 | 0.17 | 0.33 |
Calculate the expected return for the two stocks.(Round your answers to 2 decimal places. (e.g., 32.16)) |
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for the two stocks.(Do not round intermediate calculations andround your final answers to 2 decimal places. (e.g., 32.16)) |
Standard deviation | |
Stock A | % |
Stock B | % |
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