Question: Problem 11-7 Calculating Returns and Standard Deviations [LO 1 Consider the following information: Rate of Return if State Occurs Probability of State of Economy .23
Problem 11-7 Calculating Returns and Standard Deviations [LO 1 Consider the following information: Rate of Return if State Occurs Probability of State of Economy .23 63 .14 State of Stock B Recession Normal Stock A 050 .130 320 -33 .56 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(RB) 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 tha Hints ReferenceS eBook & Resources
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