Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.02 -0.17 Normal 0.60 0.08 0.12 Boom 0.20 0.16 0.35 Required: Given that the expected return for Stock A is 8.400%, calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)
|State||Probability (P)||STOCK A (X)||(P * X )||P * (X -Average Return of X)^2|
|Average Return =||(P * X)|
|VARIANCE =||P * (X -Average Return of X)^2|
|Standard Deviation =||Square root of (P * (X -Average Return of X)^2)|
|Square root of 19.84|
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