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Problem 11-8 Calculating Returns and Standard Deviations (L01, CFA2) Consider the following information Rate of Return if State Occurs State of Economy Recession Norma1 Boom
Problem 11-8 Calculating Returns and Standard Deviations (L01, CFA2) Consider the following information Rate of Return if State Occurs State of Economy Recession Norma1 Boom Probability of State of Economy 0.25 0.30 0.45 Stock A Stock B 0.03 0.10 0.12 0.17 0.37 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return forA Expected return forB
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