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probability return if state occurs stock A Return if state occurs Stock B recession .16 .05 -.16 normal .62 .08 .13 boom .22 .13 .30
| probability | return if state occurs stock A | Return if state occurs Stock B | |
| recession | .16 | .05 | -.16 |
| normal | .62 | .08 | .13 |
| boom | .22 | .13 | .30 |
1. Expected return (%) Stock A?
standard deviation stock A?
2. Expected return (%) stock B?
standard deviation stock B :
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
