Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .15 .04
Consider the following information: |
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | .15 | .04 | .15 | ||||||
Normal | .61 | .07 | .14 | ||||||
Boom | .24 | .12 | .31 |
Calculate the expected return for each stock.(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for each stock.(Do not round intermediate calculations. Enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.) |
Standard deviation | |
Stock A | % |
Stock B | % |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started