There is a 2 3 . 3 2 % probability of a below - average economy and
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Question:
There is a probability of a belowaverage economy and a probability of an average economy. If there is a belowaverage economy, Stocks A and B will have returns of and respectively. If there is an average economy, Stocks A and B will have returns of and respectively. Compute the following for Stocks A and B: Please write all answers as percentages eg should be written as :
Stock A Expected Return:
Stock B Expected Return:
Stock A Standard Deviation:
Stock B Standard Deviation:
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