Question: I need the answer to the standard deviation stock A Question. Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of

I need the answer to the standard deviation stock A Question.

Problem 13-7 Calculating Returns and Standard Deviations [LO1]

Consider the following information:

Rate of Return If State Occurs

State of

Probability of

Economy

State of Economy

Stock A

Stock B

Recession

.21

.06

.21

Normal

.58

.09

.08

Boom

.21

.14

.25

Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return

Stock A

% 9.42

Stock B

% 5.48

Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation

Stock A

% ?

Stock B

% 15.25

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