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Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10 96 8
Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10 96 8 96 2 0.20 13 96 7 96 3 0.20 12 96 6 96 4 0.30 14 96 9 96 5 0.20 15 96 8 96 The standard deviations of stocks A and B are and respectively. Spreadsheet 16018.xlsx 1.596; 1.996 2.596; 1.196 3.296; 2.096 1.596; 1.196
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