Question: Problem 11-7 Calculating Returns and Standard Deviations [LO 1] Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom
Problem 11-7 Calculating Returns and Standard Deviations [LO 1] Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 23 58 Stock A 025 105 270 Stock B -38 28 51 19 Requirement 1: Calculate the expected return for the two stocks. (Do not round Intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g. 32.16).) Expected return E(RA) E(R) % Requirement 2: Calculate the standard deviation for the two stocks (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation % % 08
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