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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 .10 .02
Consider the following information:
| Rate of Return if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Recession | .10 | .02 | .19 |
| Normal | .50 | .08 | .16 |
| Boom | .40 | .14 | .34 |
a) Calculate the standard deviation for Stock A.
b) a) Calculate the standard deviation for Stock B.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
