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Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .20 .70 .10 Stock

Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy .20 .70 .10 Stock A .05 .07 .14 Stock B -.19 .14 .36 Calculate the expected return for Stock A. 7.30% 8.69% 7.67% 8.62% Calculate the expected return for Stock B. 9.60% 10.33% 10.08% 9.12% 9.98% Calculate the standard deviation for Stock A. 2.37% 1.67% 2.49% 2.25% 2.46% Calculate the standard deviation for Stock B. 15.71% 11.11% 16.50% 14.93% Calculate the standard deviation for Stock B. 15.71% 11.11% 16.50% 14.93% 16.34%

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