Question: Exercise 5 Given the information below, compute the expected return and standard deviation for the two stocks: Below is the answer the professor gave. I

Exercise 5 Given the information below, compute the expected return and standard deviation for the two stocks: Below is the answer the professor gave. I can get all of the numbers except the variance and standard deviation. How is this professor getting these answers? Thank you.

Exercise 5 Given the information below, compute the expected return and standard

Prob 0.3 Economic condition Recession Normal Boom A Return 0.06 0.07 0.11 Deviation from Mean Squared Deviation B Return A B A B -0.2 -0.013 -0.261 0.000169 0.068121 0.13 -0.003 0.069 9E-06 0.004761 0.33 0.037 0.269 0.001369 0.072361 0.55 0.15 0.073 0.061 Exp. Return Variance Std Dev 0.000261 0.033909 0.016155 0.184144

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