Question
State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.06 –0.11...
| State of Economy | Probability of State of Economy | Stock A | Stock B | ||||||||
| Recession | 0.20 | 0.06 | –0.11 | ||||||||
| Normal | 0.55 | 0.13 | 0.17 | ||||||||
| Boom | 0.25 | 0.18 | 0.37 | ||||||||
a. Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Return for A:
Return for B:
b. Calculate the standard deviation for the two stocks. (Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
St Dev for A:
St Dev for B:
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