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Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.15 0.09 0.22 Normal 0.55 0.14
Rate of Return if State Occurs | |||||||||
State of Economy | Probability of State of Economy | Stock A | Stock B | ||||||
Recession | 0.15 | 0.09 | 0.22 | ||||||
Normal | 0.55 | 0.14 | 0.17 | ||||||
Boom | 0.30 | 0.22 | 0.20 | ||||||
Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Standard deviation | |
Stock A | % |
Stock B | % |
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