Question: Problem 11-8 Calculating Returns and Standard Deviations Consider the following information: Book Rate of Return if State Occurs Print rences State of Economy Recession Normal

Problem 11-8 Calculating Returns and Standard Deviations Consider the following information: Book Rate of Return if State Occurs Print rences State of Economy Recession Normal Boom Probability of State of Economy 0.20 0.40 0.40 Stock A 0.05 0.10 0.13 Stock B -0.20 0.10 0.25 b. Calculate the standard deviation for the two stocks. (Do not round percent rounded to 2 decimal places.) Standard deviation for A Standard deviation for B
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
