We know the following expected returns for stocks A and B, given different states of the economy State (s) Probability E(r A,s ) E(r B,s ) Recession 0 1 0 02 0 01 Normal 0 5 0 13 0 04 Expansion 0 4 0 21 0 08 Part 3 What is the standard deviation of returns for stock A Submit Attempt 1 10 for 10 pts...

the standard deviation of returns for stock A is 1expected return of stock A Expected return 002 013 ...

We know the following expected returns for stocks A and B, given different states of the economy:

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We know the following expected returns for stocks A and B, given different states of the economy:

State (s)	Probability	E(r_A,s)	E(r_B,s)
Recession	0.1	-0.02	0.01
Normal	0.5	0.13	0.04
Expansion	0.4	0.21	0.08

Part 3

What is the standard deviation of returns for stock A?

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Attempt 1/10 for 10 pts.

Part 4

What is the standard deviation of returns for stock B?

Related Book For answer-question

Financial Algebra advanced algebra with financial applications

ISBN: 978-0538449670

1st edition

Authors: Robert K. Gerver

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Posted Date: Jan 03, 2021 09:11 PM

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We know the following expected returns for stocks A and B, given different states of the economy:

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the standard deviation of returns for stock A is 1expected return of stock A Expected return 002 013 ... View the full answer

Financial Algebra advanced algebra with financial applications

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