Calculate the standard deviation for the two stocks


Consider the following information: Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Recession .22 .020 – .27 Normal .57 .100 .17 Boom .21 .160 .40 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.) Expected return E(RA) % E(RB) % 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.) Standard deviation σA σB %

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Financial Management: Calculate the standard deviation for the two stocks
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