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Q10 Consider the following information: begin{tabular}{|c|c|c|c|} hline & & multicolumn{2}{c|}{ Rate of Return if State Occurs } cline { 3 - 4 } State
Q10 Consider the following information: \begin{tabular}{|c|c|c|c|} \hline & & \multicolumn{2}{c|}{ Rate of Return if State Occurs } \\ \cline { 3 - 4 } State of Economy & \begin{tabular}{c} Probability of State \\ of Economy \end{tabular} & Stock A & Stock B \\ \hline Recession & 0.22 & 0.07 & -0.22 \\ \hline Normal & 0.52 & 0.1 & 0.07 \\ \hline Boom & 0.26 & 0.15 & 0.24 \\ \hline \end{tabular} a) Calculate the expected retum for Stocks A and B Stock A Stock B b) Calculate the standard deviation for Stocks A and B. Stock A Stock B
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