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Problem 11-5 Calculating Returns and Standard Deviations Based on the following information: Rate of Return If State Occurs State of Economy Probability of State of
Problem 11-5 Calculating Returns and Standard Deviations Based on the following information: Rate of Return If State Occurs State of Economy Probability of State of Economy .18 .59 23 Stock A .09 Recession Normal Boom Stock B - 13 16 .33 .12 .17 Calculate the expected return for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Expected return Stock A Stock B Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)) Standard deviation Stock A Stock B
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