Question: Problem 11-7 Calculating Returns and Standard Deviations [LO 11 Consider the following information: Rate of Return it State Occurs State of Probability of State Economy
Problem 11-7 Calculating Returns and Standard Deviations [LO 11 Consider the following information: Rate of Return it State Occurs State of Probability of State Economy of Economy Stock A Stock B Recession 21 015 -26 Normal 56 -16 Boom 23 150 .39 095 Requirement 1: Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Expected return ERA) ER) % Requirement 2: Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Standard deviation OA % %
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