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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 | ||||||
a. | Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
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