Question
Intro We know the following expected returns for stocks A and B, given different states of the economy: State (s) Probability E(r A,s ) E(r
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(rB,s) |
| Recession | 0.1 | -0.02 | 0.01 |
| Normal | 0.5 | 0.13 | 0.04 |
| Expansion | 0.4 | 0.21 | 0.08 |
Part 3
What is the standard deviation of returns for stock A?
Submit
Attempt 1/10 for 10 pts.
Part 4
What is the standard deviation of returns for stock B?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
9th Edition
9339222571, 978-9339222574
