Question
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .20 .05
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession .20 .05 .21 Normal .60 .08 .14 Boom .20 .13 .31 Calculate the expected return for Stock A. Calculate the expected return for Stock B. Calculate the standard deviation for Stock A. Calculate the standard deviation for Stock B.
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
7th Edition
0136103227, 9780136103226
