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

Consider the following information:

  

Rate of Return if State Occurs
  State of Economy Probability of State of Economy Stock A Stock B
  Recession .10 .04 –.19
  Normal .60 .09 .15
  Boom .30 .15 .31

  

Calculate the expected return for Stock A.
  • 10.30%
  • 9.35%
  • 10.82%
  • 9.28%
  • 10.71%

  

Calculate the expected return for Stock B.
  • 16.40%
  • 9.00%
  • 17.22%
  • 15.58%
  • 17.06%

  

Calculate the standard deviation for Stock A.
  • 3.41%
  • 2.41%
  • 3.58%
  • 3.24%
  • 3.54%

  

Calculate the standard deviation for Stock B.
  • 13.80%
  • 9.76%
  • 14.49%
  • 13.11%
  • 14.35%
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