Consider the following information:
Rate of Return of State Occurs
State of Economy = Recession, Normal, Boom
Probability of State of Economy= .20, .50, .30
Stock A =
.08, .11 ,.16
Stock B = -.15 , .14 , .31
a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.)
b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) % %
a. Stock A expected return %
b.Stock B expected return %
a.Stock A standard deviation %
b. Stock B standard deviation %
