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Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .20 .05 .18 Normal .55 .08
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | .20 | .05 | .18 | ||||||
Normal | .55 | .08 | .11 | ||||||
Boom | .25 | .13 | .28 | ||||||
Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Standard deviation | |
Stock A | % |
Stock B | % |
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