Consider the following information: Rate of Return If State Occurs State of Probability of State of...
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Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Stock B Economy Recession .15 .04 -15 Normal .61 .07 .14 Boom .24 .12 .31 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation % % 000 % % Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Stock B Economy Recession .15 .04 -15 Normal .61 .07 .14 Boom .24 .12 .31 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return Stock B expected return b. Stock A standard deviation Stock B standard deviation % % 000 % %
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