Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.16 0.04
Consider the following information: |
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | 0.16 | 0.04 | ? | 0.20 | |||||
Normal | 0.61 | 0.08 | 0.09 | ||||||
Boom | 0.23 | 0.15 | 0.26 | ||||||
Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) |
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) |
Standard deviation | |
Stock A | % |
Stock B | % |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started