Based on the following information: |
Rate of Return If State Occurs | |||||||||
State of | Probability of | ||||||||
Economy | State of Economy | Stock A | Stock B | ||||||
Recession | .17 | .06 | – | .17 | |||||
Normal | .50 | .09 | .12 | ||||||
Boom | .33 | .14 | .29 | ||||||
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.) |
Expected return | |
Stock A | % |
Stock B | % |
Calculate the standard deviation for the two stocks. |
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