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Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(ra,s) E(Tb,s) 0.1 -0.03
Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(ra,s) E(Tb,s) 0.1 -0.03 0.05 Recession 0.5 0.12 0.08 Normal Expansion 0.4 0.2 0.12 Attempt 1/10 for 10 pts. Part 3 What is the standard deviation of returns for stock A? 3+ decimals Submit Part 4 Attempt 1/10 for 10 pts. What is the standard deviation of returns for stock B? 4+ decimals Submit
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