We know the following expected returns for stocks A and B, given different states of the economy:
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Question:
We know the following expected returns for stocks A and B, given different states of the economy:
State (s) | Probability | E(rA,s) | E(rB,s) |
Recession | 0.1 | -0.02 | 0.01 |
Normal | 0.5 | 0.13 | 0.04 |
Expansion | 0.4 | 0.21 | 0.08 |
Part 3
What is the standard deviation of returns for stock A?
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Attempt 1/10 for 10 pts.
Part 4
What is the standard deviation of returns for stock B?
Related Book For
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
Posted Date: