Question: Problem 11-7 Calculating Returns and Standard Deviations (LO 11 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 11 Consider the

following information: Rate of Return if State Occurs State of Economy Recession

Problem 11-7 Calculating Returns and Standard Deviations (LO 11 Consider the following information: Rate of Return if State Occurs State of Economy Recession Normal Boom Probability of State of Economy 20 .60 .20 Stock A 035 115 190 Stock B -30 20 43 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

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