Question: Problem 13-7 Calculating Returns and Standard Deviations (LO1) Consider the following information: Rate of Return if State Occurs Stock A Stock B State of economy
Problem 13-7 Calculating Returns and Standard Deviations (LO1) Consider the following information: Rate of Return if State Occurs Stock A Stock B State of economy Recession Normal Boom Probability of State of Economy 0.15 0.55 0.30 0.06 0.15 0.26 - 0.23 0.20 8.25 Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Expected return % Stock A Stock B Calculate the standard deviation for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Standard deviation % Stock A Stock B
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