Question
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 | .05 | –.23 |
| Normal | .60 | .08 | .14 |
| Boom | .30 | .13 | .32 |
|
Calculate the standard deviation for Stock A. |
|
Calculate the standard deviation for Stock B. |
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