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State Probability Stock A Stock B Recession 0.15 0.04 (0.17) Normal 0.55 0.09 0.12 Boom 0.30 0.17 0.27 Based on the following information, calculate the
State | Probability | Stock A | Stock B | |||
Recession | 0.15 | 0.04 | (0.17) | |||
Normal | 0.55 | 0.09 | 0.12 | |||
Boom | 0.30 | 0.17 | 0.27 |
Based on the following information, calculate the expected return and standard deviation for Stock A and Stock B. | |||||||
Input area: | |||||||
State | Probability | Stock A | Stock B | ||||
Recession | 0.15 | 0.04 | (0.17) | ||||
Normal | 0.55 | 0.09 | 0.12 | ||||
Boom | 0.30 | 0.17 | 0.27 | ||||
(Use cells A6 to D9 from the given information to complete this question.) | |||||||
Output area: | |||||||
Stock A | Probability | Return | Product | Return deviation | Squared deviation | Product | |
Recession | 0.15 | 0.04 | |||||
Normal | 0.55 | 0.09 | |||||
Boom | 0.30 | 0.17 | |||||
E(R) | Variance | ||||||
Standard deviation | |||||||
Stock B | Probability | Return | Product | Return deviation | Squared deviation | Product | |
Recession | |||||||
Normal | |||||||
Boom | |||||||
E(R) | Variance | ||||||
Standard Deviation |
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