Question: 10 4 points eBook Hint Problem 11-7 Calculating Returns and Standard Deviations [LO 1] Consider the following information: Probability of State Rate of Return
10 4 points eBook Hint Problem 11-7 Calculating Returns and Standard Deviations [LO 1] Consider the following information: Probability of State Rate of Return if State Occurs State of Economy Recession Normal Boom of Economy Stock A Stock B .15 .02 .50 .35 205 -.30 .10 .18 .15 .31 Print References a. Calculate the expected return for the two stocks. (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 the two stocks. (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 Stock B expected return % % b. Stock A standard deviation % Stock B standard deviation %
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