Question
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .10 .03
| Consider the following information: |
| Rate of Return if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Recession | .10 | .03 | .19 |
| Normal | .60 | .08 | .16 |
| Boom | .30 | .12 | .32 |
| Calculate the expected return for Stock A. |
| Calculate the expected return for Stock B. |
| Calculate the standard deviation for Stock A. |
| Calculate the standard deviation for Stock B. |
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
5th Edition
0078110289, 978-0078110283
