Question: The table below summarizes information on the future returns on stocks A and B. Rate of Return if State of Economy Occurs State of Economy
| The table below summarizes information on the future returns on stocks A and B. |
| Rate of Return if State of Economy Occurs | |||
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Thumbs up | .20 | .05 | .21 |
| Normal | .60 | .08 | .13 |
| Thumbs down | .20 | .15 | .35 |
| a) Stock A's expected return is:______ |
| b) Stock B's expected return iis:______ |
| c) Stock A's standard deviation of returns is:______ |
| d) Stock B's standard deviation of returns is:______ |
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