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Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .18 .09

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .18 .09 .13 Normal .59 .12 .16 Boom .23 .17 .33 Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A 12.61 12.61 Correct % Stock B 11.67 11.67 Incorrect % Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Stock A 14.59 14.59 Incorrect % Stock B 14.70 14.70 Correct %

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