Question: Consider the following information: Calculate the expected return for the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent
Consider the following information:
Calculate the expected return for the two stocks.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Calculate the standard deviation for the two stocks.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
| Economy | Probability of State of Economy | Rate of Return if State Occurs | |
|---|---|---|---|
| Stock A | Stock B | ||
| Recession | .24 | .030 | .29 |
| Normal | .59 | .110 | .19 |
| Boom | .17 | .180 | .42 |
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