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Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy a. Stock A expected return a. Stock B expected return
Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation 17 .50 .33 Rate of Return if State Occurs a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Stock A .06 .09 14 % Stock B -.17 .12 .29
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