Calculating returns and standard deviations


Based on the following information, the expected return and standard deviation for Stock A are __percent and __percent, respectively. The expected return and standard deviation for Stock B are __percent and __percent, respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

Rate of Return if State Occurs

State of

Economy Probability of State

of Economy Stock A Stock B

Recession .15 .05 -.17

Normal .65 .08 .12

Boom .20 .13 .29

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Finance Basics: Calculating returns and standard deviations
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