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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.10 0.03
Consider the following information: |
Rate of Return if State Occurs | |||
State of Economy | Probability of State of Economy | Stock A | Stock B |
Recession | 0.10 | 0.03 | -0.23 |
Normal | 0.70 | 0.07 | 0.15 |
Boom | 0.20 | 0.15 | 0.33 |
Required: |
(a) | Calculate the expected return for Stock A. (Do not round your intermediate calculations.) |
(b) | Calculate the expected return for Stock B. (Do not round your intermediate calculations.) |
(c) | Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) |
(d) | Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) |
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