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You find a certain stock that had returns of 18 percent, -25 percent, 21 percent, and 7 percent for four of the last five years.
You find a certain stock that had returns of 18 percent, -25 percent, 21 percent, and 7 percent for four of the last five years. The average return of the stock over this period was 9.6 percent. a. What was the stock's return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the standard deviation of the stock's returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Missing return b. Standard deviation Consider the following information: Rate of Return If State Occurs Stock A Stock B State of Probability of State of Economy Economy Recession 20 Normal Boom 30 08 50 16 a. Calculate the expected return for Stocks A and B (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 Stocks A and B (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return Stock B expected return Stock A standard deviation Stock B standard deviation b
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