Question: 8. What are the standard deviations for Stock A and Stock B respectively? State Probability Return on A Return on B Boom .10 16% -2%

8. What are the standard deviations for Stock A and Stock B respectively?

State Probability Return on A Return on B

Boom .10 16% -2%

Normal .50 10% 5%

Bust .40 5% 9%

A) 3.41%, 3.24% B) 3.41%, 3.59% C) 3.41%, 4.08% D) 3.32%, 3.92%

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