Question: Problem 11-5 Calculating Returns and Standard Deviations Based on the following information: Rate of Return If State Occurs State of Economy Recession Normal Boom Probability

 Problem 11-5 Calculating Returns and Standard Deviations Based on the following

Problem 11-5 Calculating Returns and Standard Deviations Based on the following information: Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State of Economy Stock A 21 .09 .12 Stock B - .16 .13 .30 .51 .28 17 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)) Stock A Stock B Expected return 12.77 % 11.67 % 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

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