Question

Consider the following information. The percentage returns are entered as decimals in the table, but you...

Consider the following information. The percentage returns are entered as decimals in the table, but you will enter your answers as a whole percentage.
Rate of Return if State Occurs
State of Probability of State
Economy of Economy Stock A Stock B
  Recession .20               .035          –.30         
  Normal .60               .115          .20         
  Boom .20               .190          .43         
Requirement 1:

Calculate the expected return for the two stocks. Enter your answer as a percentage (NOT decimal) rounded to 2 decimal places (e.g., enter 4.5% as 4.50.)
Expected return
  E(RA) %
  E(RB) %
Requirement 2:

Calculate the standard deviation for the two stocks. Enter your answer as a percentage (NOT decimal) rounded to 2 decimal places (e.g., enter 4.5% as 4.50.)
Standard deviation
  σA %
  σB %
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