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 .05
| Consider the following information: |
| Rate of Return if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Recession | .10 | .05 | .18 |
| Normal | .70 | .09 | .17 |
| Boom | .20 | .15 | .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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Financial Intelligence For IT Professionals
Authors: Karen Berman, Joe Knight, John Case
1st Edition
1422119149, 9781422119143
