Probability of State Rate of Return if State Occurs Economy Recession of Economy Stock A Stock...

Transcribed Image Text:

Probability of State Rate of Return if State Occurs Economy Recession of Economy Stock A Stock B .20 .035 -.30 Normal .60 .115 .20 Boom .20 .190 .43 a. Calculate the expected return for the two stocks. (Do not round intermedia calculations and enter your answers as a percent rounded to 2 decimal places, e. 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. 32.16.) a. Expected return of A % 100 Expected return of B % b. Standard deviation of A % Standard deviation of B % Probability of State Rate of Return if State Occurs Economy Recession of Economy Stock A Stock B .20 .035 -.30 Normal .60 .115 .20 Boom .20 .190 .43 a. Calculate the expected return for the two stocks. (Do not round intermedia calculations and enter your answers as a percent rounded to 2 decimal places, e. 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. 32.16.) a. Expected return of A % 100 Expected return of B % b. Standard deviation of A % Standard deviation of B %