Calculate the standard deviation for the two stocks


Consider the following information:

Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock A Stock B
Recession 0.21 0.06 - 0.21
Normal 0.58 0.09 0.08
Boom 0.21 0.14 0.25

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places.

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate the standard deviation for the two stocks
Reference No:- TGS039011

Expected delivery within 24 Hours