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Rate of Return If State Occurs State of Probability of Economy State of Economy Stock Stock B Recession .22 .07 - .22 Normal .52 .10
Rate of Return If State Occurs State of Probability of Economy State of Economy Stock Stock B Recession .22 .07 - .22 Normal .52 .10 .07 Boom .26 15 .24 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Stock A expected return % Stock B expected return % Stock A standard deviation % Stock B standard deviation % a. b
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