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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 .25 .03
Consider the following information:
Rate of Return If State Occurs | |||||||||||||||||||||
State of | Probability of | ||||||||||||||||||||
Economy | State of Economy | Stock A | Stock B | ||||||||||||||||||
Recession | .25 | .03 | .11 | ||||||||||||||||||
Normal | .30 | .10 | .17 | ||||||||||||||||||
Boom | .45 | .12 | .37 | ||||||||||||||||||
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