Consider the following information: Probability Rate of Return if State Occurs State of of State of...
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Consider the following information: Probability Rate of Return if State Occurs State of of State of Economy Economy Stock A Stock B Recession 0.30 0.06 -0.20 Normal Boom 0.55 0.15 0.15 Q.18 0.15 0.35 a. Calculate the expected return for the two stocks. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return for A Expected return for B % % b. Calculate the standard deviation for the two stocks. Note: Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Standard deviation for A Standard deviation for B % % Consider the following information: Probability Rate of Return if State Occurs State of of State of Economy Economy Stock A Stock B Recession 0.30 0.06 -0.20 Normal Boom 0.55 0.15 0.15 Q.18 0.15 0.35 a. Calculate the expected return for the two stocks. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return for A Expected return for B % % b. Calculate the standard deviation for the two stocks. Note: Do not round your intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Standard deviation for A Standard deviation for B % %
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