Question: 1.Based on the following information, calculate the expected return and standard deviation for two stocks: State of the Economy| Probability | Rate of Return Stock

1.Based on the following information, calculate the expected return and standard deviation for two stocks:

State of the Economy| Probability | Rate of Return Stock A | Rate of Return Stock B

Recession | .25 | .05 | -.19

Normal | .50 | .06 | .14

Boom | .25 | .10 | .34

1.Based on the following information, calculate

Input area: State Probability Stock A Stock B Recession 0.25 0.05 (0.19) Normal 0.50 0.06 0.14 Boom 0.25 0.10 0.34 Output area: Return Squared Stock A Probability Return Product Deviation Deviation Product Recession Normal Boom E(R) = 0.0000 Variance = Standard Deviation 0.00% Return Squared Stock B Probability Return Product Deviation Deviation Product Recession Normal Boom E(R) = 0.0000 Variance = Standard Deviation 0.00%

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