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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 0.15 0.16
Consider the following information State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.15 0.16 Normal 0.55 0.15 - 0.20 0.17 Boom 0.30 0.23 0.22 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return Stock A Stock B % % Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Standard deviation Stock A Stock B % %
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