Question
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession .20 .03
| Consider the following information: |
| Rate of Return if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Recession | .20 | .03 | .20 |
| Normal | .50 | .08 | .16 |
| Boom | .30 | .13 | .36 |
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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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
