Question

# Consider the following information: Rate of Return If State Occurs State of Probability of Economy State...

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.16 0.05 − 0.16 Normal 0.62 0.08 0.13 Boom 0.22 0.13 0.30 Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) Expected return Stock A % Stock B % Calculate the standard deviation for the two stocks.

I know that Expected Return for Stock A is 8.62% , Expected Return for Stock B is 12.1% and Standard Deviation for Stock A is 2.56%, but I keep getting Stock B standard deviation wrong. Please Help.

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