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Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.55 0.25 Rate of Return if State Occurs Expected
Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.55 0.25 Rate of Return if State Occurs Expected return for A Expected return for B Stock A 0.05 0.14 0.16 Stock B a. Calculate the expected return for the two stocks. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. -0.20 0.14 0.34 Answer is complete but not entirely correct. Standard deviation for A Standard deviation for B 9.00 % 11.60 X % b. Calculate the standard deviation for the two stocks. Note: Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. 3.69 X % 17.88 % SU 6 of 7 www Next >
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