Question: - 10.0 2. Consider the two assets A and B for which returns (%) under different conditions of economy are given as below. Find the

- 10.0 2. Consider the two assets A and B for

- 10.0 2. Consider the two assets A and B for which returns (%) under different conditions of economy are given as below. Find the expected return and risk (as measured by standard deviation of return) of each asset. Returns Condition of Economy Prob. Stock A Stock B Recession 0.10 -18.0 Below avg. 0.20 14.0 2.0 Average 0.40 12.0 8.0 Above avg. 0.20 24.0 12.0 Boom 30.0 18.0 1.00 0.10

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