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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.1 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 | 0.1 | 0.04 | .23 | |
| Normal | 0.5 | 0.07 | 0.11 | |
| Boom | 0.4 | 0.12 | 0.32 | |
| Calculate the expected return for Stock A. | ||||
| Calculate the expected return for Stock B. | ||||
| Calculate the standard deviation for Stock A. | ||||
| Calculate the standard deviation for Stock B. | ||||
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Basic Finance An Introduction To Financial Institutions, Investments And Management
Authors: Herbert B Mayo
9th Edition
0324322291, 9780324322293
