Question: Based on the following table, calculate the expected return and standard deviation for stock A. State of Probability of State of Economy Rate of Return

 Based on the following table, calculate the expected return and standard

Based on the following table, calculate the expected return and standard deviation for stock A. State of Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Economy 15 Recession Normal Boom 04 09 17 17 12 27 .30 What is the expected return for stock A? Question 3 What is the standard deviation for stock A? Question 4 Given that stock X has an expected return of 8 percent, which of the following statements are true? I. If its standard deviation is positive, then the return of stock X may sometimes be above 8 percent. II. If the standard deviation is 2 percent, then the return of stock X can never go below 6 percent III. If the standard deviation is zero, then the return of stock X is always 8 percent. O A.I O B.I and lI O C.I, Il, and IlI O D.I and

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