Question: Problem 13-7 Calculating Returns and Standard Deviations (L01) Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy

 Problem 13-7 Calculating Returns and Standard Deviations (L01) Consider the following

Problem 13-7 Calculating Returns and Standard Deviations (L01) Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Economy Stock A Stock B Recession .22 .10 - 17 Normal :52 .13 .12 Boom .26 .18 .29 a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected retum Stock B expected return Stock A standard deviation Stock B standard deviation % % % % b

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