Question: Problem 11-7 Calculating Returns and Standard Deviations [LO 1] Consider the following information: Rate of Return if State Occurs State of Probability of State Economy

Problem 11-7 Calculating Returns and Standard Deviations [LO 1]

Consider the following information:

Rate of Return if State Occurs

State of

Probability of State

Economy

of Economy

Stock A

Stock B

Recession

.23

.025

.38

Normal

.58

.105

.28

Boom

.19

.270

.51

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
_A	%
_B	%

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