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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .21 .040
Consider the following information:
State of Economy | Probability of State of Economy | Rate of Return if State Occurs | |
Stock A | Stock B | ||
Recession | .21 | .040 | -.31 |
Normal | .61 | .120 | .21 |
Boom | .18 | .200 | .44 |
Requirement 1: | ||
Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)
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