Question: Standard Deviation for Stock A & B? Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs
Standard Deviation for Stock A & B?
Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Stock A Stock B Economy Recession Normal Boom Probability of State of Economy .22 .52 .26 .07 .10 .15 .22 .07 .24 Calculate the expected return for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return 10.64 % Stock A Stock B 5.04 % Calculate the standard deviation for each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation Stock A % Stock B %
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