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The following table shows the possible returns for 2 stocks next year. State of Economy Probability Stock A Stock B Depression Recession Normal Boom 0.10
The following table shows the possible returns for 2 stocks next year. State of Economy Probability Stock A Stock B Depression Recession Normal Boom 0.10 0.25 0.45 0.20 -3% 2% 7% 12% -10.5% 5.9% 13% 21.1% For Stock A: Expected return = 5.75% Standard Deviation = 3.5576% Coefficient of Variation = .6187x Required: a) Calculate the expected return, standard deviation and coefficient of variation for Stock B b) Based on this information which stock would you invest in and why
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