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 | .04 | –.20 |
| Normal | .60 | .09 | .13 |
| Boom | .30 | .15 | .36 |
|
Calculate the expected return for Stock A. |
|
Calculate the expected return for Stock B. |
|
Calculate the standard deviation for Stock A. |
|
Calculate the standard deviation for Stock B. |
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