There is a 29.20% probability of a below average economy and a 70.80% probability of an average economy.  If there is a below average economy stocks A and B will have returns of -9.50% and 15.70%, respectively.  If there is an average economy stocks A and B will have returns of 6.00% and 5.00%, respectively. Compute the:

1. Expected Return for Stock A: 
2. Expected Return for Stock B: 
3. Standard Deviation for Stock A: 
4. Standard Deviation for Stock B:

Answer rating: 100% (QA)

Expected Return Stock A 0292 950 0708 600 01474 1474 Stock B 0292 1570 0708 ... View the full answer