Use the blank table below to help you determine the standard deviation for the following stocks.

• Stock A will return a rate of 6% in a recession, 8% in normal conditions and 12% during a boom.The expected return is 8%.
• Stock B will return a rate of 2% in a recession, 8% in normal conditions and 14% during a boom.The expected return is 8%.

Additionally, use the standard deviation to determine the Coefficient of Variation. Finally, list the Range.

Deviation from Squared Rate of Expected Expected Squared Deviation x Scenario Return Return Return Deviation Probability Probability (1) (2) (3) = (2) - (1) (4) = (3) x (3) (5) (4) x (5) Recession 0.25 Normal 0.5 Boom 0.25 Standard Deviation = CV = Range =