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

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 Economy Economy Recession Normal Boom State of Stock A Stock B 15 56 .29 .06 .09 - 10 19 .36 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.) Stock A expected return Stock B expected return a. b. Stock A standard deviation Stock B standard deviation

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