Question: Based on the following information, calculate the expected return and standard deviation and variance for two stocks: This is what i have so far and
Based on the following information, calculate the expected return and standard deviation and variance for two stocks:
This is what i have so far and i am stuck if someone can check my work so far and help me fill in the rest thanks
| 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 |
| Stock A | Probability | Return | Product | Return Deviation | Squared Deviation | Product |
| Recession | 0.25 | 0.05 | 1.2500 | |||
| Normal | 0.50 | 0.06 | 3.0000 | |||
| Boom | 0.25 | 0.10 | 2.5000 | |||
| E(R) = | 6.5000 | Variance = | - | |||
| Standard Deviation | 1.92% | |||||
| Stock B | Probability | Return | Product | Return Deviation | Squared Deviation | Product |
| Recession | 0.25 | (0.19) | (47.6188) | |||
| Normal | 0.50 | 0.14 | 7.0000 | |||
| Boom | 0.25 | 0.34 | 85.0000 | |||
| E(R) = | 10.7500 | Variance = | - | |||
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