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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 0.10 0.70 0.20 Stock

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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 0.10 0.70 0.20 Stock A 0.05 0.08 0.13 Stock B -0.21 0.14 0.34 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select) (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select) (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (Click to select) (d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) (Click to select) & SML i 13-7 Calculating Returns and Standard Deviations (L01) onsider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.70 0.20 Stock A 0.05 0.08 0.13 Stock B -0.21 0.14 0.34 Required: (a) Calculate the expected return for Stock A. (Do not round your i calculations.) (b (Click to selec 8.70% 8.62% 9.05% 8.69% 9.14% (CHICK TO Select xpected return for Stock B. (Do not round your in n & SML A Saved M3-7 Calculating Returns and Standard Deviations (LO1) Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.70 0.20 Stock A 0.05 0.08 0.13 Stock B -0.21 0.14 0.34 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) Click to select) (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) 1 V (Click to 15.08% (c 13.78% 9.00% 14.50% 15.23% CHICK to select tandard deviation for Stock A. (Do not round your intermediate (d) Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) (Click to select) Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.10 0.70 0.20 Stock A 0.05 0.08 0.13 Stock B -0.21 0.14 0.34 Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select) (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select) (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (d och select 1 1.64% 2.33% tandard deviation for Stock B. (Do not round your intermediate 2.21% 2.42% 2.44% LICK TO Select

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