Question
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 | -0.19 |
| Normal | 0.60 | 0.08 | 0.14 |
| Boom | 0.20 | 0.15 | 0.32 |
| Required: |
| (a) | Calculate the expected return for Stock A. (Do not round your intermediate calculations.) |
| (b) | Calculate the expected return for Stock B. (Do not round your intermediate calculations.) |
| (c) | Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) |
| (d) | Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) |
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Financial Accounting A Focus On Interpretation And Analysis
Authors: Richard F Kochanek, A Douglas Hillman
7th Edition
1111061750, 9781111061753
