Question:
|
State of the Economy
|
Probability of state occurring
|
IBM Return (%)
|
ATT Return (%)
|
|
|
|
|
|
|
Boom
|
.2
|
60
|
20
|
|
Normal
|
.5
|
10
|
10
|
|
Recession
|
.3
|
-10
|
0
|
a. Calculate the Expected Return of IBM and ATT.
b. Calculate the Variance of IBM and ATT.
c. Calculate the Standard Deviation of IBM and ATT.