Consider the following information Rate of return if state occurs State Probability Economy state of the economy A shares B shares Recession 0 20 0 05 0 17 Normal 0,55 0 08 0 12 Eye 0 25 0 13 0 29 1 Calculate the expected return of the two stocks 2 Find the standard deviation of the two stocks ...

To calculate the expected return of each stock we multiply each rate of return by ...

Consider the following information: Rate of return if state occurs State Probability Economy state of the economy

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Consider the following information:

			Rate of return if state occurs
State	Probability
Economy	state of the economy		A-shares		B-shares
Recession		0.20		0.05	?	0.17
Normal		0,55		0.08		0.12
Eye		0.25		0.13		0.29
1. Calculate the expected return of the two stocks. 2. Find the standard deviation of the two stocks.

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Understanding Basic Statistics

ISBN: 9781111827021

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Authors: Charles Henry Brase, Corrinne Pellillo Brase

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Posted Date: Jun 14, 2023 06:50 AM

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Consider the following information: Rate of return if state occurs State Probability Economy state of the economy

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Understanding Basic Statistics

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