Problem 11-5 Calculating Returns and Standard Deviations

Based on the following information:

				Rate of Return If State Occurs
State of	Probability of
Economy	State of Economy			Stock A			Stock B
Recession		.22			.10			.17
Normal		.52			.13			.12
Boom		.26			.18			.29

Calculate the expected return for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Expected return
Stock A	%
Stock B	%

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16))

	Standard deviation
Stock A	%
Stock B	%