You have been given the following information: State of Economy Recession Normal Boom Probability of State...

Transcribed Image Text:

You have been given the following information: State of Economy Recession Normal Boom Probability of State of Rate of Return if State Occurs Economy Stock A Stock B .15 .04 -.17 .55 .09 .12 .30 .17 .27 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation % % didididi % % You have been given the following information: State of Economy Recession Normal Boom Probability of State of Rate of Return if State Occurs Economy Stock A Stock B .15 .04 -.17 .55 .09 .12 .30 .17 .27 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation % % didididi % %