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 .21 .56 .23 Stock A .015 .095 .250 Stock B -36 26 .49 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).) E(RA) E(RB) Expected return % % 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).) OA OB Standard deviation % %
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