Consider the following information:
Rate of return if state occurs
Probability of state of economy Stock A Stock B
State of Economy
Recession 0.10 0.04 -.20
Normal 0.50 0.08 0.16
Boom 0.40 0.13 0.34
Calculate the expected return for Stock A. (Do not round your intermediate calculations.)
Calculate the expected return for Stock B. (Do not round your intermediate calculations.)
Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.)
Calculate the standard deviation for Stock B. (Do not round your intermediate calculations.)