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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 0.20 0.05
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 | 0.05 | -0.17 |
Normal | 0.50 | 0.07 | 0.13 |
Boom | 0.30 | 0.16 | 0.35 |
(a)Calculate the standard deviation for Stock A. (b)Calculate the standard deviation for Stock B
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